Association-level insurance policy lenders review when a borrower finances a condominium unit.
A condo master policy is the condominium association’s project-level insurance policy that lenders review when a borrower finances a condo unit.
The condo master policy matters because a condo lender is not only reviewing the borrower’s unit. The lender also needs to understand whether the broader building or project has acceptable insurance support.
It also matters because the master policy does not always replace the borrower’s own HO-6 Policy. Borrowers need to know which parts are covered by the association and which parts may still need unit-owner coverage.
Borrowers usually encounter condo-master-policy questions during Condo Review or when a Condo Questionnaire asks for project insurance information.
The lender, association, management company, or insurance agent may need to provide evidence of the master policy before the mortgage can move toward final approval.
| Term | What it tells the borrower |
|---|---|
| Condo master policy | Association-level insurance for the building or project |
| HO-6 Policy | Unit-owner insurance carried by the borrower |
| Walls-In Coverage | Interior coverage concept that helps explain where master policy coverage may stop |
| Condo Questionnaire | Underwriting document that may collect master-policy details |
A buyer applies for a mortgage on a condo unit. The lender asks the association for the master insurance policy to confirm that the project-level coverage supports the loan. The buyer may still need a separate HO-6 policy for the unit-owner side.
Condo master policy differs from Condo Insurance because condo insurance is the broader borrower-facing category, while the master policy is the association-level piece.
It differs from Homeowners Insurance because homeowners insurance for a detached home is usually centered on the owner’s whole dwelling policy. Condo insurance splits risk between project-level and unit-owner coverage.
It also differs from Condo Review. Condo review is the underwriting process; the master policy is one item that process may review.