Thinking your condo’s HOA insurance has you fully protected?
Worried you’ll find out too late that it doesn’t cover everything inside your walls?
When you buy a condo in Atlanta, you’re stepping into a unique form of homeownership that includes shared responsibilities—and shared risks. Your homeowners association (HOA) may carry a master insurance policy, but that policy leaves critical gaps that can cost you thousands if you’re not properly insured.
In this article, you’ll learn exactly what your HOA’s master policy covers—and what it doesn’t. You’ll also discover how to protect your investment, belongings, and finances with the right condo (HO-6) insurance policy.
Here’s what we’ll cover:
- The three types of HOA master policies in Georgia
- Common (and costly) gaps in coverage
- How Atlanta’s geography affects your risk
- What your HO-6 policy must include
- How to work with your agent for complete protection
What the HOA Master Insurance Policy Covers—and What It Doesn’t
In Georgia, condo HOAs are legally required to carry property insurance that protects against fire and similar perils. But the actual extent of coverage depends on the type of master policy your HOA maintains. There are three main structures:
1. Bare Walls Coverage
This is the most limited option. It typically covers:
- The building’s exterior
- Shared structural components
- Common areas (lobbies, hallways, etc.)
Everything inside your unit—walls, flooring, cabinetry, fixtures—is your responsibility.
2. Single Entity Coverage
More comprehensive, this policy includes:
- Everything covered in Bare Walls
- Some original interior components (e.g., basic drywall or fixtures)
It still excludes personal property and any upgrades.
3. All-Inclusive (All-In) Coverage
This is the broadest type and covers:
- The building structure and common areas
- Original, builder-grade interior fixtures in your unit
It does not cover any improvements you’ve made or your personal belongings.
What Your HOA Doesn’t Cover (And Why It Matters)
Even the most comprehensive HOA policy leaves gaps that can put you at serious financial risk.
1. Your Personal Property Is Always Your Responsibility
Your furniture, electronics, clothing, jewelry, and other belongings are never covered by the HOA.
If there’s a fire, theft, or water damage—you’re on your own without condo insurance.
2. Interior Upgrades and Renovations Aren’t Included
Did you install hardwood floors, granite countertops, or custom lighting?
Unless you’ve got your own coverage, none of that is protected.
3. Water Damage: A Big Risk with Limited Protection
Georgia law doesn’t require HOAs to carry water damage insurance. Many don’t.
- Burst pipes
- Leaking appliances
- Water seepage from other units
These can destroy your unit’s interior—and it likely won’t be covered.
4. No Personal Liability Protection Inside Your Unit
If a guest gets hurt in your unit or you accidentally cause damage to another unit,
you could face lawsuits and thousands in legal or medical expenses.
5. Loss Assessment Charges Can Hit Your Wallet Hard
If the HOA’s policy comes up short or a high deductible applies, the shortfall is often passed on to unit owners.
You could be hit with a $5,000–$10,000+ assessment after a major claim.
6. You May Be on the Hook for HOA Policy Deductibles
Some HOAs require owners to cover a portion of the master policy deductible—often $5,000 to $25,000.
That could become your out-of-pocket cost even if the HOA files the claim.
7. Additional Living Expenses Aren’t Covered
If your condo is uninhabitable due to damage,
don’t expect your HOA policy to pay for hotel stays, meals, or temporary housing.
8. No Coverage for Home-Based Businesses
Running a business out of your condo? Your HOA policy excludes business property and liability.
You’ll need separate coverage to protect your gear and income.
Why Atlanta Condo Owners Face Unique Risks
Atlanta’s location brings weather and water concerns your HOA might not fully address:
Frequent Severe Weather
From hailstorms to high winds, Atlanta buildings take a beating.
Your HOA’s policy may cover the structure—but not the damage inside your unit.
Flash Floods and Sewer Backups
Standard condo and HOA policies do not include flood insurance.
If you’re in a low-lying area, separate flood and water backup coverage is essential.
What Should an HO-6 Condo Insurance Policy Include?
To fully protect yourself, your HO-6 condo insurance should cover:
- Personal Property Coverage
Protect belongings like furniture, electronics, clothes, and jewelry. - Building Property (Dwelling) Coverage
Covers upgrades and finishes inside your unit—cabinets, countertops, flooring, etc. - Personal Liability Protection
Shields you from financial liability for injuries or damage inside your unit. - Loss Assessment Coverage
Covers your share of HOA policy gaps, deductibles, and shared losses. - Additional Living Expenses
Pays for hotel stays, meals, and temporary housing during repairs. - Water Backup Coverage
Essential for sewer or drain-related water damage—often excluded from base policies.
How to Work With Your Insurance Agent the Right Way
Condo insurance isn’t one-size-fits-all. Every HOA master policy is different.
Here’s how to get it right:
- Request and review your HOA’s master policy documents
- Talk to your agent about specific gaps and risks
- Customize your HO-6 policy based on your unit and your upgrades
- Ask about endorsements for water backup, business use, or high-value items
An experienced local agent who understands Atlanta’s condo market can make all the difference.
Conclusion: Why Your HOA Insurance Isn’t Enough—and What to Do About It
At the end of the day, most Atlanta condo owners think they’re fully protected—until something goes wrong.
If you’ve been assuming your HOA’s insurance covers everything inside your unit, it’s time to reconsider. Now that you know where the gaps are—from personal property and water damage to liability and assessments—you can take the right steps.
Your next move?
Talk to an insurance agent who knows Atlanta condo policies inside and out. Review your HOA’s master policy and build an HO-6 plan that fills every gap.
Because the only thing worse than damage to your home is finding out too late that you weren’t covered at all.
