Two policies, two jobs
The exact split is set by your association's governing documents, so treat this as a general outline rather than an answer for your building.
Association master policy
- Usually covers the building structure and common elements such as roofs, exterior walls, hallways, risers and shared mechanical systems.
- Depending on its form, may also cover original interior finishes inside units, or may stop at the bare framing.
- Carries its own deductible, which can be large on a high-rise and may be passed to an owner under the declarations.
- Is managed by the board and the property manager, who file the claim and work with the adjuster.
Unit owner's HO-6 policy
- Usually covers personal belongings and the owner's share of interior finishes not covered by the master policy.
- Often covers upgrades and improvements the owner or a previous owner added, if the policy includes that coverage.
- May include loss assessment coverage for a share of the association deductible charged back to the owner.
- Is filed by the owner, who deals directly with their own adjuster.
Bare walls, single entity and all-in
Master policies are often described by how far into a unit they reach. A bare walls or studs-out arrangement covers the structure but leaves drywall, cabinets, flooring and fixtures to the owner. A single entity arrangement covers the unit as originally built but not later upgrades. An all-in arrangement reaches further and may include improvements. The terms vary by insurer and by declarations, so the words in your documents control, not the label someone uses in conversation.
This matters a great deal in Cherry Creek, where many units have been remodeled with custom millwork, stone and wide-plank floors. If the master policy covers only original builder-grade finishes, the difference between that and what is actually in the unit may fall to the owner's HO-6 policy or to the owner directly.
Where the water came from matters too. A leak from a common riser and a leak from another owner's dishwasher hose can be handled differently, and some declarations make the owner whose fixture failed responsible for the deductible. Read the maintenance and insurance sections of the declarations before you assume who pays.
Who typically handles which part
| Damaged item | Often falls under | Check this |
|---|---|---|
| Common hallway carpet and walls | Master policy | Whether the manager has already reported the loss |
| Drywall inside the unit | Either, depending on policy form | The declarations' definition of the unit boundary |
| Original kitchen cabinets | Master policy in some buildings | Whether the policy is single entity or bare walls |
| Upgraded flooring or stone counters | HO-6 improvements coverage | Your HO-6 limit for improvements and betterments |
| Furniture, clothing, art | HO-6 personal property | Whether you have scheduled items for valuable pieces |
| Hotel or rental costs while drying | HO-6 loss of use | The time and amount limits on that coverage |
Questions to ask the manager and your agent
- Has the association reported this loss to the master carrier, and what is the claim number?
- Which form does the master policy follow, and where in the declarations is the unit boundary defined?
- What is the master policy deductible, and do the declarations allow it to be charged to an owner?
- Does my HO-6 include loss assessment coverage, and what is its limit?
- Will the master carrier's adjuster inspect my unit, or only the common areas?
- Can one restoration company document both the common areas and my unit so the records match?
Common questions
Should I file my own claim if the association is already filing?
Talk to your agent first, but many owners report the loss to their own carrier promptly anyway, because late notice can complicate a claim. Reporting is not the same as receiving payment.
Does the upstairs owner have to pay for my damage?
Only if they or their insurer are found responsible, usually because of negligence or a clause in the declarations. That decision belongs to the insurers and, if needed, the courts, not to a restoration company.
General information for Cherry Creek, not a quote or professional advice. In an emergency, call 911.