What Is the Master Policy in a Condo and What Does It Cover?

The master policy generally covers the building's physical structure, including the roof, exterior walls, elevators, and common hallways. It also typically includes shared plumbing, electrical, and HVAC systems that serve multiple units. This means if a pipe bursts in a shared wall, the master policy may pay for the repair to the building.

However, coverage limits and definitions of what counts as a 'unit' differ. Some master policies cover only the bare structure, while others include built-in fixtures like cabinets and countertops. You need to review your association's declaration and bylaws to see exactly what is protected under the master policy.

• Exterior walls and roof
• Common hallways and stairwells
• Shared plumbing and electrical lines
• Elevators and lobby areas
• Fire sprinkler systems
• Landscaping and parking structures

Start by reading your condo association's master deed, bylaws, and any insurance summary documents. These are usually provided when you buy your unit or available from the association's management. Look for sections that describe what the association is responsible for insuring.

If the documents are unclear, ask the association's board or manager for a plain-language explanation. You can also review your own policy with your insurance agent to see where coverage overlaps or leaves gaps. This step is essential before a water damage event happens.

If you discover water damage, first turn off the water source if you can safely do so. Then document the damage with photos and notes. Notify your association and your own insurer right away, but avoid making permanent repairs before they assess the loss.

Contact local water damage pros to handle drying and cleanup, especially if the water has soaked into drywall, flooring, or ceilings. In Chapel Hill, where humidity is high, quick drying matters to prevent mold growth. Keep records of all communication and receipts for any temporary expenses.