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Master policy deductibles and loss assessments: planning for condo owners
When a condominium master property policy carries a large deductible, owners may be assessed to fund the deductible layer before insurer payment on a covered claim. HO-6 loss assessment coverage helps only within policy limits.
· Original reporting: True Condo Cost
Condo owners often discover master policy deductibles only after a hurricane, water, or fire event triggers a board vote to assess owners.
Loss assessment coverage on an HO-6 policy may reimburse qualifying charges, but limits are finite and policy language matters.
Fannie Mae's 2026 selling guide update also screens projects with very large per-unit deductible exposure, linking insurance structure to financing.
How deductible pass-through works
Master policies may use flat dollar deductibles or percentages of building insured value.
Associations commonly assess owners to fund the deductible before the carrier pays on a covered loss.
Allocation may be per unit, by square footage, or by ownership share depending on governing documents.
Tools and guides for buyers
Use the loss assessment calculator with declarations page inputs to estimate per-unit exposure.
Read the loss assessment coverage guide and master policy deductible guide before you set HO-6 limits.
Compare buildings in the same search when one carries a FAIR Plan renewal and a double-digit wind deductible.
Budget uncovered gaps like contingent special assessments even when monthly dues look affordable today.
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