Buying a condo in Redwood Shores? The fine print on insurance can make or break your budget when something goes wrong. You want clarity on what the HOA covers, what you cover, and how to satisfy your lender without overpaying. In this guide, you’ll learn how the association’s master policy and your HO-6 work together, what to look for in documents, and a practical checklist to use before you close. Let’s dive in.
Master insurance basics
What the HOA policy covers
Your homeowners association buys a master policy to protect the building and common areas. This usually includes the roof, exterior walls, foundation, hallways, elevators, and mechanical systems. It also commonly includes liability coverage for incidents in shared spaces and sometimes fidelity bonds or management liability. Limits and deductibles vary by community and insurer.
All-in vs. bare-walls
Associations typically choose one of two designs. An all-in or walls-in policy insures the building and often the original interior finishes up to the condition as built. A bare-walls or walls-out policy covers the exterior shell and common elements but leaves unit interiors to owners. Always confirm how your HOA defines coverage in the CC&Rs and the insurance declarations.
Deductibles and assessments
Master policies carry deductibles that can be large for major events. Your association’s governing documents explain how deductibles and uninsured losses are allocated. If allowed by the CC&Rs, you could receive a special assessment for your share of a deductible after a covered loss.
What to request from the HOA
- Current master policy declarations and endorsements
- A clear statement whether the policy is all-in or bare-walls
- Deductible amounts by peril and how deductibles are allocated
- A certificate of insurance and named insureds
- Recent minutes or notices about claims and insurance assessments
- Whether the HOA carries fidelity bonds, D&O, and loss of income coverage
What your HO-6 covers
Standard protections
An HO-6 policy is designed for condo owners. It typically includes personal property coverage, personal liability, and additional living expenses if you must move out during repairs. It also includes coverage for improvements and betterments you added to the interior, but you need the right limit. Ordinance or law coverage can help with code-required upgrades during rebuilding.
Endorsements condo owners need
- Loss assessment coverage. This can reimburse your share of an HOA special assessment tied to a covered loss or liability claim. It often helps with the association’s deductible.
- Building property or walls-in coverage. If your master policy is bare-walls, this adds protection for interior finishes and fixtures you are responsible for.
- Improvements and betterments. Set limits high enough to rebuild the interior to current standards.
- Earthquake coverage. Standard policies exclude quake. Separate earthquake insurance is common in the Bay Area.
- Flood coverage. Standard HO-6 excludes flood. If your building is in or near a flood zone, separate flood insurance is needed.
Why you still need HO-6
Even with a strong master policy, you still need HO-6 for your personal property and liability. It also protects your interior upgrades if the association policy excludes them. Most importantly, loss assessment coverage can help with unexpected HOA assessments after a covered claim.
How claims are handled
Common loss scenarios
- A shared pipe bursts in a wall and damages several units. The master policy often handles common plumbing and building repairs if interiors are covered. If interiors are excluded, owners may rely on their HO-6 for interior finishes and personal property.
- A fire damages the building. The master policy typically covers the shell and common areas. Your HO-6 handles your belongings, displacement costs, and interior items you are responsible for.
- A leak starts in your unit and damages neighbors. Your HO-6 and liability may respond for damage tied to your negligence. The association may repair common elements and seek reimbursement if appropriate.
Deductible allocation
If the association policy carries a large deductible, the HOA may assess owners for their share according to the CC&Rs. Loss assessment coverage on your HO-6 is designed to help reimburse such assessments when the loss is covered.
Redwood Shores risks and lenders
Earthquake and flood realities
San Mateo County is an active seismic region. Standard master and HO-6 policies usually exclude earthquake, so many owners add separate earthquake coverage. Redwood Shores is a low-lying, Bay-adjacent area where flood exposure and long-term sea-level concerns can affect insurance planning. Standard policies exclude flood, and separate flood insurance may be required if the property is in a mapped flood zone.
What lenders often require
Mortgage lenders want proof that the collateral is protected. They review the HOA master policy to confirm adequate hazard coverage. If the association carries a bare-walls policy, some lenders will require you to add building property coverage to your HO-6 for the interior. Always confirm your lender’s insurance requirements early in escrow so you have time to adjust coverage or secure needed endorsements.
Buyer checklist
Get these documents
- HOA master policy declarations and endorsements
- Certificate of insurance and named insureds
- CC&Rs and bylaws, especially insurance and unit boundary definitions
- HOA minutes, budgets, and any notices about claims or insurance-related assessments
- A plain-language insurance summary stating all-in or bare-walls and current deductibles
Ask your HOA
- Does the master policy cover interiors, and to what extent?
- What are current deductibles by peril, including fire, earthquake, and flood?
- How are deductibles and uninsured losses allocated to owners?
- Any major claims in the past 5 to 10 years or pending litigation?
- Do reserve studies account for insurance and major repairs?
Ask your insurance agent
- Based on the HOA policy, which HO-6 endorsements should you add?
- How much coverage do you need for improvements and betterments to rebuild the interior?
- Will your lender accept the HOA policy plus your HO-6 as structured?
- What are typical deductibles and premiums for earthquake and flood coverage in Redwood Shores?
Sizing your coverage
Personal property and interiors
Insure personal belongings at replacement cost, not just cash value. Set improvements and betterments limits to match the cost to rebuild your interior finishes and fixtures. If the HOA is bare-walls, consider a building property endorsement sized to a realistic interior rebuild.
Loss assessment limits
Discuss a reasonable worst-case assessment with your agent. Small communities can face assessments that exceed tens of thousands of dollars when deductibles are large. Choose a loss assessment limit that fits the HOA’s structure and your risk tolerance.
Earthquake and flood options
Consider separate earthquake insurance given regional risk. Evaluate flood insurance if your building is in or near a flood hazard area. Your lender may require flood coverage, and having both policies in place can speed underwriting and closing.
Final thoughts and next steps
The biggest insurance swing factor for a Redwood Shores condo is whether the HOA insures unit interiors or only the shell. Once you know that, you can tailor your HO-6, set the right limits for improvements and betterments, and add loss assessment coverage to protect against big deductibles. Confirm lender requirements early, and you will move into your new home with confidence.
If you want help reviewing HOA documents, coordinating with your lender, and aligning coverage with your goals, reach out to Robert Pedro. You will get local guidance, mortgage insight, and steady support from offer to closing.
FAQs
Do I need HO-6 if my HOA has insurance?
- Yes. The master policy does not cover your personal property, personal liability, or many interior items. HO-6 fills those gaps and adds loss assessment protection.
What is loss assessment coverage for condos?
- It helps reimburse your share of an HOA special assessment tied to a covered loss or liability claim, including a share of the association’s deductible in many cases.
Who pays if a pipe in a shared wall floods my unit?
- It depends on unit boundaries and policy language. If the pipe is a common element, the master policy often responds for building components. Your HO-6 covers your belongings and interiors you own.
Are earthquake and flood covered by standard policies?
- Typically no. Earthquake and flood are excluded from standard master and HO-6 policies. Separate policies are usually needed in the Bay Area.
Will my lender accept the HOA policy plus HO-6?
- Often yes, if the combined coverage meets their standards. If the HOA is bare-walls, lenders may require building property coverage on your HO-6 for the interior.
What should I review before making an offer?
- Get the master policy declarations, CC&Rs, deductibles by peril, allocation rules for deductibles, recent claim history, and an insurance summary stating all-in or bare-walls.
