Sometimes condominium unit owners are confused by what property the homeowner’s association insures and what they are supposed to insure themselves. To determine who insures what, we must look to the governing documents OF the association.

Usually, there is a section on “insurance” which outlines this information. Generally, the association is required to carry either “bare walls” coverage or “walls-in” coverage.

“Bare walls” means that the insurance for the HOA covers the building structures, up to the uncovered sheetrock and sub-floor. They do not insure the paint on the walls, the carpet on the floors, or interior fixtures such as cabinets, toilets, and countertops.

“Walls-in” means that the HOA does provide insurance coverage for paint, carpet, and cabinets. Most governing documents requiring this type of coverage state that, in the event of a loss, the insurance for the association should pay to replace the unit back to its condition as it was originally built. If there have been upgrades made since then, such as a remodeled kitchen with granite countertops or more expensive carpeting, the condominium owners policy (called an HO6 policy) would need to pay for the difference in pricing.

Unit owners should contact their HO6 agent to be certain they have the correct coverage in place.

Terri Guest, CIRMS, CMCA is the Northern California Sales & Marketing Representative for Berg Insurance Agency and can be reached at Terri@berginsurance.com.