What Is a Blanket Limit Condo Master Policy?
One shared limit covers the whole building, not unit by unit. Your HO-6 still covers your unit's interior.
Free to compare
A blanket limit means the HOA's master policy doesn't carry a separate number for each unit. It holds one total for the whole building, drawn down as claims come in, rather than stopping at a per-unit cap. Your declarations page lists what your HOA's policy covers (often the building's structure and common areas), and that split decides where your HO-6 needs to pick up. Ask the HOA or its agent for a copy of the master policy, since that document, not your own policy, tells you where the shared coverage actually ends.
Check what your HO-6 actually carries
A blanket limit tells you nothing about your own walls, cabinets, or the special assessment after a shared loss. Compare HO-6 policies to see what fills that gap and at what price.
What happens when the HOA's coverage runs short
A blanket limit is one total, and a bad enough loss can draw it down close to zero. Fire, a collapsed roof, a burst pipe in the mechanical room, any of these can pull hard against that shared number. When the master policy's limit isn't enough to rebuild the building, the HOA usually has to make up the difference, and that's where a special assessment comes from. The HOA bills each owner a share of the shortfall, regardless of whose unit started the problem.
Loss assessment coverage on your HO-6 reimburses you for your share of that bill, up to the limit you carry. That limit is usually separate from your dwelling or personal property coverage. Some HO-6 policies include a small amount of it by default, often a few thousand dollars, and that's rarely enough if the assessment is for a structural repair or a large deductible the HOA's policy carries. Your declarations page shows what you have, and it's worth raising to a higher limit if the building is older or the HOA's master policy looks thin.
Water from a neighbor's unit works on a similar split. If a pipe bursts upstairs and floods your ceiling and floor, the master policy may cover the building's structure, drywall, and framing depending on where the HOA's coverage line sits. Your HO-6 covers your personal property, the finishes you added, and any additional living expenses if you can't stay in the unit. Fault doesn't usually decide who pays first. Each policy answers for what it covers, and if the HOA's insurer thinks the upstairs owner was negligent, that gets worked out separately, often well after your own claim is settled.
Townhomes complicate this because some are insured like condos, under a master policy with HO-6 coverage underneath, and others are insured like detached houses, with each owner carrying a standard HO-3 that covers the whole structure. Whether a townhome has a master policy depends on how the HOA is set up and what the governing documents say, not on how the building looks. A townhome owner who assumes they're covered like a condo, or like a single-family house, can end up with a gap no one catches until there's a claim. The HOA's governing documents and insurance certificate, not the building's shape, say which arrangement applies.
How much HO-6 coverage does a unit actually need
There's no single number, because it depends on what the master policy already covers and what your unit contains. Start with the interior. If your HOA's policy only covers the building as it was originally built, often called a bare walls arrangement, your HO-6 needs to cover everything added since, including cabinets, flooring, built-in shelving, and any upgrades a past owner made. If the HOA's policy covers those finishes too, a setup usually called all-in or single-entity, your HO-6 carries less of that load. The master policy document says which one applies to your building.
Dwelling coverage on an HO-6 is often listed as a small amount, sometimes just enough to cover drywall repairs after a leak, because the building itself sits under the master policy. That number should still match what it would cost to rebuild your unit's interior, not what the unit would sell for on the market. A high-end kitchen or custom millwork costs more to replace than a builder-grade one, and the dwelling limit should reflect that.
Personal property coverage works the same way it would in a house. It should add up to what it would cost to replace your furniture, electronics, and belongings, not what they're worth secondhand. Many HO-6 policies default to actual cash value for contents, which pays out after factoring in depreciation, and some insurers offer replacement cost coverage instead for a higher premium. That choice is worth checking on your declarations page, since the difference shows up most after a real loss, not before one.
Loss of use coverage, sometimes called additional living expenses, pays for a hotel or temporary rental if the unit becomes unlivable during repairs. A reasonable limit covers several months of housing costs at a rate close to what you'd actually pay nearby, not a flat amount chosen without checking. Liability coverage rounds this out, covering injuries or property damage you're responsible for inside your unit. An agent can help size each of these to the unit, but the master policy's gaps are what should drive the number, not a guess.
Before you compare
Pull your loss assessment limit and your dwelling figure off your declarations page, then ask the HOA for the master policy's deductible and whether it covers bare walls or finishes. That gap is what your HO-6 needs to close.
