Living in a condo in Brickell or Miami Beach offers amazing views and zero yard work. But when a pipe bursts inside your wall, who pays for it? You, or the building?
The most dangerous assumption condo owners make is thinking, "My HOA fee is $900 a month; surely that includes insurance." It does—but usually only for the building's skeleton, not your actual home.
Key takeaways:
- The HOA master policy often stops at the drywall (“walls-in” is on you).
- Loss assessment coverage can protect you from surprise HOA special assessments.
- Personal liability matters if your unit damages another unit.
1. What does the HOA master policy cover vs. your HO-6?
Your HOA has a "Master Policy." In Florida, this typically covers the roof, the exterior walls, and the common areas (lobby, pool, elevators).
However, from the drywall inward, you are on your own. This is called "Walls-In" coverage. Without your own policy (HO-6), you are responsible for:
- Flooring and carpets.
- Kitchen cabinets and countertops.
- Lighting fixtures and appliances.
- Your furniture and clothes.
2. What is “loss assessment” coverage and why does it matter?
This is unique to condo living. If a hurricane hits and the damage to the building exceeds the Master Policy's limit (or falls under their massive deductible), the HOA can split the bill among the unit owners.
You could suddenly receive a bill for $10,000 or $50,000 as a "Special Assessment."
WYN Tip:
Add Loss Assessment Coverage to your policy. It usually costs less than $20/year to get $2,000+ of protection against these surprise HOA bills.
3. Why is condo liability coverage critical?
If your washing machine hose breaks and floods the unit downstairs, ruining their hardwood floors and their Picasso painting, you are liable.
Your neighbor's insurance might pay them, but then their insurance company will sue you to get the money back (subrogation). A standard WYN condo policy includes personal liability to protect you from these lawsuits.