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What Is the Bare Walls vs All-In Insurance Rule in Condos?

Last updated October 23, 2026

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The short answer

Understanding the Master Condo Association Policy

Your condominium association holds a master insurance policy for the building's common elements. The specific coverage type, either 'bare walls' or 'all-in,' is detailed in the association's governing documents. This master policy is funded through your monthly or annual dues. It establishes the baseline for what the building's collective insurance will repair after a covered loss like a pipe burst or storm damage.

It is crucial to obtain and review a copy of your association's master policy declaration page. This document explicitly states the coverage form and any amendments. Pay close attention to the 'insuring agreement' and definitions of 'unit' and 'common elements.' Knowing this helps you understand where the association's financial responsibility ends and your personal obligation begins following water damage or another incident.

What the Bare Walls Coverage Typically Includes

A 'bare walls' or 'studs-out' policy is often more restrictive. Under this form, the association's insurance usually covers only the building's original structure. This generally includes external walls, the roof, foundation, common hallways, and shared plumbing within walls. The policy protects the shared asset that all unit owners collectively own, focusing on the shell of the building itself.

In a bare walls scenario, the interior of your unit is typically your responsibility. This includes drywall, flooring, cabinetry, light fixtures, and all personal belongings. If a pipe bursts inside a wall, the master policy may cover repairing the pipe and the wall cavity, but you would likely be responsible for replacing the damaged drywall, paint, and flooring inside your home.

  • The building's foundational structure and exterior walls
  • The roof, common hallways, and stairwells
  • Original studs, beams, and concrete subfloors
  • Shared plumbing and electrical lines within walls or common areas
  • Elevators and other building-wide mechanical systems
  • Exterior doors and windows (structure, not interior trim)

What the All-In Coverage Typically Includes

An 'all-in' or 'single entity' policy often provides broader coverage for the building. In addition to the structure, this type of master policy frequently extends to standard interior fixtures and installations. This can mean coverage for items like kitchen cabinets, bathroom vanities, and built-in appliances that were original to the unit. It offers more protection for the unit's condition as initially sold.

Your Essential Ho-6 Condo Owner's Insurance Policy

Regardless of the master policy type, you need an HO-6 insurance policy. This personal policy fills the critical gaps left by the association's coverage. It is designed specifically for condo owners. Your HO-6 policy should provide three key coverages: personal property, liability protection, and, most importantly, 'walls-in' or 'dwelling' coverage for the interior structure of your unit.

The dwelling coverage amount in your HO-6 policy should be sufficient to rebuild your unit's interior. This includes all the elements your responsibility under the master policy, such as drywall, flooring, and fixtures. In Chandler, where plumbing issues can occur, ensuring adequate coverage is vital. Work with your insurance agent to set this limit correctly based on your condo's features and the master policy's terms.

  • Dwelling coverage for interior walls, floors, and built-in items you own
  • Personal property coverage for your furniture, clothes, and electronics
  • Liability protection if someone is injured in your unit
  • Loss of use coverage for hotel stays if your unit is uninhabitable
  • Coverage for improvements and betterments you have added
  • Assessment coverage for certain special charges from the association

Steps to Take After Water Damage in a Condo

When water damage occurs, your first step is to mitigate further damage safely. Shut off the water source if you can do so safely and move belongings away from the water. Immediately notify your condo association's management company or board. They will initiate a claim under the master policy if the source is in a common element, like a roof leak or pipe in a wall.

You must also contact your own HO-6 insurance provider to report the incident. Document all damage thoroughly with photos and videos before any cleanup begins. Local water damage pros can perform an inspection to determine the source and extent of damage, which is vital information for both insurance claims. Policies vary, and your insurer decides what is covered. Keep records of all communications.

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Frequently asked questions

Who is responsible for a leak from the unit above me?

Liability typically depends on the leak's source. If it originates from a common pipe within a wall, the association's master policy may be primary. If it starts from an appliance or fixture inside the neighbor's unit, their HO-6 policy is usually responsible. Your own policy may cover your interior damage while subrogation sorts out fault.

Does my HO-6 policy cover the master policy deductible?

Sometimes, but not automatically. Some HO-6 policies include 'loss assessment' coverage that can help pay your share of a master policy deductible if the association charges it back to owners. You must check your specific policy language and limits. This coverage often has a sub-limit, so the amount available may be less than the full deductible.

What if my condo association changes its policy type?

If the association changes from an all-in to a bare walls policy, your responsibility increases significantly. You would need to adjust your HO-6 dwelling coverage limit upward to cover the newly excluded interior elements. Your insurance agent can help you review the amendment and update your policy to prevent a dangerous and costly coverage gap.

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