In Arizona HOAs, the association’s insurance covers what the association owns or must insure under its CC&Rs, while your own policy covers the rest. Condo owners usually need an HO-6 policy for interiors, belongings and liability; single-family owners usually need a standard homeowner policy. Transcend can share the association’s insurance information so you and your agent can close any gaps.
Two policies, one home
If you live in a condominium or some townhome communities, your home is covered by two insurance policies: the association’s master policy and your own individual policy. If you live in a single-family planned community, the association typically insures only the common areas, and your own homeowner policy covers your house.
Which policy pays for a given loss depends on two things: your community’s CC&Rs, which define who owns and must insure each part of the building, and the actual terms of each policy. That is why the answer to “who pays?” can differ from one community to the next. This page explains the general concept; your CC&Rs, the association’s policy and your insurance agent control.
What the association’s master policy may cover
Condominium master policies are generally written in one of a few styles:
- Bare walls: covers the building structure, but not interior finishes such as cabinets, flooring and fixtures.
- Single entity or original specifications: covers the structure plus the original interior finishes, but not owner upgrades.
- All-in: broader coverage that may include improvements and betterments.
Master policies also carry a deductible, and your CC&Rs may allow the association to pass some or all of the deductible to the owner whose unit was the source of the loss or was damaged. Associations also carry general liability and directors and officers coverage. Boards can learn more in our HOA insurance guide.
What an HO-6 policy usually covers
- Personal property: furniture, electronics, clothing and belongings.
- Interior finishes and improvements: whatever the master policy does not cover, such as upgraded flooring or cabinets.
- Loss assessment: help paying your share if the association passes on a deductible or assesses owners for an uninsured loss.
- Personal liability: if someone is injured in your unit or you cause damage to another unit.
- Loss of use: extra living costs if you cannot stay in your home during repairs.
Ask your agent to compare your HO-6 limits with the association’s master policy and deductible. If you rent your unit, your tenant should carry renter’s insurance, and you may need a landlord-type policy; see renting your home in an HOA.
Monsoon roof leaks: an Arizona example
Picture a July monsoon storm. Wind drives rain under damaged roof flashing on a condo building, and water stains the ceiling and ruins the carpet in a top-floor unit. In many communities, the roof is a common element maintained by the association, so the association handles roof repair. The interior damage may fall under the master policy, the owner’s HO-6 policy, or both, depending on the master policy style, the deductible and the CC&Rs.
Now picture a slow leak from an owner’s water heater that damages the unit below. Many governing documents make the owner responsible for damage originating in their unit, and their HO-6 liability coverage may come into play.
In either case, take these steps right away:
- Limit further damage safely and take photos.
- Call Transcend at 480-750-7075 if the source may be a common element. After hours, our answering service routes true emergencies to on-call staff; see after-hours emergencies.
- Notify your own insurance carrier promptly.
- Keep receipts and records and send copies to management in writing.
Single-family homes in planned communities
In most single-family HOAs, your house, roof, block walls on your lot and personal property are covered by your own homeowner policy, often an HO-3. The association insures common areas such as parks, pools, entry monuments and perimeter walls the association owns. Check your plat and CC&Rs to see which walls and tracts belong to the association. Monsoon wind and hail claims on your roof go to your own carrier.
Questions to ask your insurance agent
- Does my HO-6 coverage match the style of my association’s master policy?
- How much loss assessment coverage do I have, and is it enough to cover the master policy deductible?
- Are my upgrades, such as new flooring or cabinets, covered?
- Does my policy cover water damage that starts in another unit or a common element?
- Do I have enough liability coverage if a leak from my unit damages a neighbor’s?
Bring a copy of your CC&Rs’ insurance and maintenance sections and the association’s certificate of insurance to that conversation.
Getting the association’s insurance information
Your lender or insurance agent may ask for the association’s certificate of insurance or policy details. Request them through Transcend in writing via the portal or email, and say who needs the certificate. For the general rules on what records owners can access, see requesting HOA records. Condominium insurance requirements also appear in the Arizona Condominium Act; our Arizona Condominium Act page offers an overview. This is general information, not legal advice; your governing documents and an Arizona HOA attorney control.
Frequently asked questions
Usually yes. A master policy typically does not cover your belongings, personal liability or some interior finishes, and many CC&Rs and lenders require owners to carry an HO-6 policy.
It depends on your CC&Rs, which may allow the association to charge some or all of the deductible to the responsible or affected owner. Loss assessment coverage on your HO-6 can help.
In most single-family planned communities, no. Your roof is covered by your own homeowner policy, while the association insures common areas.
Send a written request to Transcend through the portal or email with the lender’s details, and the certificate will be requested from the association’s insurance agent.
