Property Managers Looking for Master Condo Insurance

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If you’re a property manager or part of a condo association in Massachusetts, you already know how quickly things can get complicated.

Master Condo Insurance

Multiple units. Shared systems. Different owners. And when something goes wrong, everyone is looking for answers.

We see this all the time. There’s a master policy in place, but no one is completely clear on what it actually covers until there’s a claim.

That’s where problems start.

What a Master Condo Policy Is Really Meant to Do

A master condominium policy is designed to protect the building and shared areas.

That usually includes:

  • The structure itself

  • Roof, hallways, and stairwells

  • Shared electrical, plumbing, and HVAC systems

  • Common spaces like gyms or pools

  • Liability for accidents in common areas

But the biggest issue is not what it covers. It’s where that coverage stops.

Where Most Confusion Happens

Most people don’t realize there are different types of master policies.

Bare Walls In - Covers only the structure. Unit owners are responsible for everything inside.

Single Entity - Covers some original interior fixtures.

All In - Covers most built in features inside units, but not personal belongings.

If your policy type doesn’t match your condo documents, it creates confusion fast when there’s damage.

What We See All the Time

  • Buildings not insured to current replacement cost

  • Gaps between the master policy and unit owner policies

  • Deductibles that surprise everyone

  • Property managers assuming coverage is handled when it’s not

  • Unit owners not understanding their responsibility

Most people don’t realize these issues until a claim forces the conversation.

Real World Situations

  • A pipe bursts and damages multiple units. No one agrees on what the master policy covers

  • Storm damage reveals the building is underinsured

  • A large deductible gets pushed onto unit owners

  • A slip and fall in a common area turns into a liability issue

These situations happen more often than you think.

Coverage That Actually Matters

For most associations, these are key:

Property Coverage - Needs to reflect current rebuilding costs.

General Liability - Protects the association from accidents in shared areas.

Directors & Officers (D&O) - Protects board members making decisions.

Umbrella Insurance - Adds additional protection for larger claims.

Ordinance & Law Coverage - Helps cover the cost of rebuilding to current codes.

Common Mistakes

  • Not reviewing policies regularly

  • Assuming property managers are handling everything

  • Choosing based on price

  • Not educating unit owners

This is where most issues start.

Final Thought

If you’re managing a property or part of a condo board, it’s worth making sure your policy actually matches how your building is structured.

If you want a second set of eyes, LBP Insurance can walk through your current policy and help you identify any gaps before they become problems.

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