Condo Master Policy Deductible Explained

The master policy insures common elements and often the building shell. When a covered loss exceeds routine maintenance, the association files a claim. The deductible is not automatically paid from reserves—boards often levy a loss assessment on unit owners to fund it.

This is different from your HO-6 deductible, which applies to your unit policy. It is also different from a capital special assessment for a roof replacement, though both can hit your wallet after you buy.

Pair deductible review with our loss assessment coverage guide and water damage guide so you know how owner bills and HO-6 limits interact.

1. Request master policy declarations with all deductible schedules—not a summary page.
2. Check minutes for prior claims where owners were assessed for the deductible.
3. Divide the relevant deductible by unit count for a rough per-owner floor (governing documents may allocate differently).
4. Quote HO-6 with loss assessment limits at or above that exposure, plus margin in high-deductible buildings.
5. Add a monthly buffer in the special assessment calculator if reserves look thin after a recent claim.

A sample worksheet: Florida coastal tower, master hurricane deductible $500,000, 200 units. After named-storm damage below the deductible threshold, owners may still face a $2,500/unit assessment for cosmetic common-area repairs not covered by the master policy—plus HO-6 loss assessment exposure on the deductible itself if the board allocates it. Office of Insurance Regulation filings show master premiums rising faster than HO-6, pushing deductibles up.