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.
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.