Condo master insurance: What to know in Massachusetts

What is condo master insurance?

A condo master policy is insurance carried by the condominium association to protect the property and risks shared by all unit owners. Condo master insurance in Massachusetts generally covers common areas and building property defined by the condominium documents, while unit owners typically need separate insurance for belongings, personal liability, and anything the master policy does not cover.
 

Condo insurance types in Massachusetts

The exact coverage provided by condo master insurance in Massachusetts depends on the policy and the condominium’s governing documents. Common coverage types include:

• Building property: Can cover shared structural components and common areas such as roofs, foundations, exterior walls, hallways, elevators, and common building systems.
   
• General liability: Helps protect the association when it is legally responsible for bodily injury or property damage involving common areas.
   
• Bare-walls coverage: Generally covers the building structure while leaving more interior finishes, fixtures, flooring, and similar items to the unit owner’s policy.
   
• Single-entity coverage: Generally extends farther into units by covering original finishes and fixtures, while owners may remain responsible for belongings, upgrades, and personal liability.
   
• All-in coverage: May also cover owner-made improvements, betterments, or additions.
   
• Directors and officers liability: Can protect board members and the association against certain claims arising from board decisions.
   
• Crime and fidelity coverage: Protects association funds against certain dishonest acts. Massachusetts has specific fidelity insurance requirements for condominiums with more than 10 units.
   
• Additional coverage: Depending on the property, boards may also consider equipment breakdown, cyber, umbrella liability, flood insurance, or other coverage based on the building’s risks.

Condo association insurance requirements in MA

Massachusetts condo laws set several specific insurance requirements for condominium associations.

For condos with more than 10 units, these fidelity insurance requirements generally apply unless the unit owners vote to change them as allowed by law:

• Fidelity insurance: Condominiums with more than 10 units generally need blanket fidelity insurance covering people who handle association funds. Coverage must be at least one-fourth of annual assessments, excluding special assessments.
   
• Association named as insured: The fidelity policy must name the organization of unit owners as the insured and be for the association’s benefit.
   
• Manager or managing agent coverage: If the condominium has a manager or managing agent, that person or company must be included in the association’s fidelity coverage and must also carry substantially similar fidelity insurance at its own cost.
   
• Notice of policy changes: The fidelity policy must provide 10 days’ written notice before it is canceled or substantially changed.
   
• Insurance records: Current insurance policies, including policies that name the association as an insured or obligee, must be kept with the condominium’s financial records. Those records generally need to be retained for at least seven years.

The master deed, bylaws, policy terms, and lender requirements can all affect the coverage a particular association needs (M.G.L. c. 183A, § 10(c) and (h)).
 

Condo master policy vs. HO-6 policy

A condo master policy covers the association’s shared property and liability risks, while an HO-6 policy may cover the individual unit owner’s belongings, personal liability, and other unit-specific risks. Owners should review both policies together to understand where each one applies.
 

Master condo insurance policy costs in MA

2026 industry estimates put many condo master policies in the range of about $3,500 to $40,000+ per year, while large, high-value, or high-rise properties can cost significantly more. Premiums can vary based on the building’s age, size, location, construction, replacement cost, amenities, claims history, deductibles, safety systems, coverage limits, and insurance market conditions.

Our affiliate company FS Insurance Brokers works with insurance brokers based on a client’s location and needs to review existing coverage, identify potential gaps, and explore available insurance options for FirstService Residential-managed communities.
 

Master insurance policy tips for condo board members

1. Start the renewal conversation early

   Give your board, management team, and insurance professionals enough time to review condo master insurance in Massachusetts before the renewal date. Starting early makes it easier to look at limits, deductibles, exclusions, claims history, and any changes to the property without feeling rushed into a decision.
    

2. Review the condo documents with the policy

   The master deed and bylaws can help show what the association is responsible for and what falls to individual owners. Compare those documents with the insurance policy so the board has a clear picture of where coverage begins and ends. If anything is unclear, bring in qualified condominium counsel and the association’s insurance professional.
    

3. Know what your deductibles mean

   A higher deductible may help lower premiums, but it can also leave the association with a larger expense after a claim. Boards should understand which deductibles apply to major risks and how those costs may be handled under the condominium documents. That can also inform broader budgeting and reserve planning for the association.
    

4. Help owners understand their responsibility

   Unit owners may not always know what the master policy covers and what belongs under their own HO-6 policy. Clear communication can help reduce confusion, especially when the association changes carriers, deductibles, or coverage terms. Encourage owners to review their individual coverage with their own insurance professional.
    

5. Work with experienced insurance professionals

   Condo insurance can get complicated quickly, especially when property values, liability, fidelity coverage, lender requirements, and building-specific risks all come into play. An experienced broker can help the board look beyond price and understand the tradeoffs between coverage options.
   
   For FirstService Residential-managed communities, FirstService Financial and FS Insurance Brokers can help boards review coverage options and make more informed insurance decisions.

How FirstService Residential can help

Insurance decisions can feel complicated, especially when your board is balancing coverage, costs, deductibles, and the needs of unit owners. As North America’s leading property management company, FirstService Residential can help Massachusetts boards prepare for renewals and work with qualified insurance professionals.

Through our affiliates, FirstService Financial and FS Insurance Brokers, boards can review coverage, identify potential gaps, evaluate renewal options, and access risk-management guidance and insurance programs designed for community associations.

Contact FirstService Residential today to learn how our Massachusetts team can support your condominium.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.