Condo association insurance, sometimes called master policy insurance, is an insurance policy that covers common areas and the shared amenities of a condominium community. It’s typically purchased by the condo association, which is usually made up of all the individual condo owners in the community.

Condo association insurance typically covers two types of coverage, the first is property coverage and the second is liability coverage. Property coverage will pay for damages to the common areas of the community caused by a covered accident, while liability coverage will pay for damages if someone is injured while in the common areas of the community and the condo association is found to be at fault.

It's important to know that condo association insurance does not cover your individual unit. Each individual condo owner is responsible for obtaining their own insurance policy, known as an HO-6 policy, to cover their personal property and any improvements made to their unit.