4 min read
HOA Master Insurance Policy: What It Covers and What It Doesn't
Quick Answer: An HOA master insurance policy is a property and liability policy purchased by the homeowners association...
Condo Association Cost Guide · 2026
How much does condo association insurance cost in 2026?
Master policy pricing by community size and coverage basis, with per-unit math and the levers that move your premium.
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Quick Answer: Condo association insurance runs about $3,500 to $40,000+ per year, driven mostly by the number of units, the master policy basis (bare-walls, single-entity, or all-in), building age, and amenities. High-rise and high-value buildings can exceed $100,000. Premium is divided per unit and funded through dues, and most associations spend 20 to 35 percent of their operating budget on insurance.
On this page
Cost by community size • Cost by master policy basis • What drives the price • Sample scenarios • How to lower it • FAQ
Condo association insurance cost by community size
Condominiums carry the most expensive master policies because the association insures the entire building. Typical annual ranges:
| Community profile | Typical annual master policy |
|---|---|
| Small condo (under 25 units) | $3,500 to $7,500 |
| Mid-size (25 to 100 units) | $8,000 to $18,000 |
| Large (100 to 300 units, amenities) | $18,000 to $40,000 |
| High-rise or high-value | $100,000+ |
Ranges are 2026 estimates for budgeting, not quotes. To estimate per-unit cost, divide the premium by the number of units: a 60-unit community at $14,000 per year is about $233 per unit annually, or roughly $19 per unit per month in dues. For the broader community association picture, see our HOA insurance cost guide.
Cost by master policy basis
The single biggest coverage decision is how far into each unit the master policy reaches. The broader the basis, the higher the premium:
| Master policy basis | Relative cost | What it covers |
|---|---|---|
| Bare-walls-in | Lowest | Structure to the unfinished drywall |
| Single-entity | Moderate | Adds original builder-installed fixtures and finishes |
| All-in (all-inclusive) | Highest | Nearly all built-in elements, including some owner upgrades |
The basis must match your governing documents and what owners carry on their HO-6 policies. Our master policy guide explains each option, and our condo association insurance page covers the full coverage stack.
What drives your condo association premium
Units and total insured value
More units and a higher building replacement cost mean a larger policy, though per-unit cost usually falls as the community grows.
Master policy basis
All-in coverage costs more than bare-walls because the association insures more of each unit.
Building age, construction, and amenities
Older buildings, combustible construction, pools, elevators, garages, and clubhouses all raise the premium through more exposure to defend and repair.
Claims history and location
Prior property or liability claims and catastrophe-prone locations push rates higher, while a clean loss run earns better pricing.
Deductibles, limits, and fidelity requirements
Higher deductibles lower premium, while higher liability limits and lender-required fidelity coverage add to it.
Sample condo association quote scenarios
18-unit garden condo, bare-walls, clean loss history
~$5,500 / yr
about $25 per unit / mo
60-unit mid-rise, single-entity, pool and clubhouse
~$14,000 / yr
about $19 per unit / mo
220-unit community, all-in, multiple amenities
~$32,000 / yr
about $12 per unit / mo
12-story high-rise, all-in, elevators and garage
$100,000+ / yr
varies by value and exposure
Scenarios are illustrative estimates, not quotes. For your exact number, request a quote below.
How to lower your condo association insurance cost
Start with the master policy basis: if your governing documents allow single-entity rather than all-in, you may not need to insure every owner upgrade at the association level, as long as owner HO-6 policies fill the gap. Raising the master deductible lowers premium, and keeping roofs, plumbing, and common systems well maintained reduces the claims that drive renewals up.
Bundling property, liability, directors and officers, fidelity, and a commercial umbrella with one carrier usually beats piecing them together. As HOA and community association specialists, we place associations with programs direct buyers cannot reach and make sure the board is covered without over-insuring.
Condo association insurance cost FAQ
How much does condo association insurance cost per year?
A small condo under 25 units commonly runs $3,500 to $7,500 per year, mid-size communities $8,000 to $18,000, and large 100 to 300 unit communities with amenities $18,000 to $40,000. High-rise and high-value buildings can exceed $100,000.
How much does the master policy cost per unit?
Divide the annual premium by the number of units. A 60-unit community at $14,000 per year is about $233 per unit per year, or roughly $19 per unit per month added to dues. Per-unit cost usually falls as the community grows because fixed costs spread across more owners.
Does all-in coverage cost more than bare-walls?
Yes. Bare-walls-in is the least expensive because the association only insures the structure to the drywall. Single-entity costs more by adding original fixtures, and all-in is the most expensive because it covers nearly all built-in elements inside each unit. The basis should match your governing documents and owner HO-6 policies.
Why did our condo master policy premium increase?
Common drivers are rising building replacement costs, recent property or liability claims, aging roofs and plumbing, higher reinsurance costs, and added amenities. Catastrophe exposure and a hard insurance market also push premiums up across community association programs.
How can our association lower its insurance cost?
Align the master policy basis with owner HO-6 coverage so you are not over-insuring, raise the master deductible, keep the building well maintained to limit claims, and bundle property, liability, D&O, and fidelity with one carrier. An association specialist can place you with programs direct buyers cannot reach.
What percent of an association budget goes to insurance?
Most community associations spend roughly 20 to 35 percent of their annual operating budget on insurance. The premium is typically divided per unit and funded through monthly or quarterly dues.
Get your association's exact price
A licensed advisor will review your governing documents, shop association carriers, and build a gap-free program for your board. No pressure.
Get My Association Quote Call 833-776-4671NF
Reviewed by Neal Fusco, VP Commercial Lines
25+ years specializing in HOA, condo, and community association risk across Illinois and 40+ states.
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