Buying a condo in Belmont comes with a big question that is easy to miss: what exactly does the master insurance policy cover, and what falls to you? It is not just paperwork. The right coverage can protect you from surprise bills after a leak, fire, or storm. In this guide, you will learn how master policies and HO‑6 coverage work in Massachusetts, what to look for in condo documents, and how insurance choices can affect your monthly costs and offer strength. Let’s dive in.

Master policy vs. HO‑6 in Massachusetts

What the association insures

A condominium’s master policy is purchased by the association. It covers common elements and, depending on the policy type, some or all building components inside units. Common types include:

• Bare walls or walls‑out: the association insures the shell and common areas. You insure interior surfaces, fixtures, and finishes.
• All‑in or walls‑in: the association insures more of the interior components and sometimes improvements. You still need personal property and liability coverage.

The policy type sets the line between association responsibility and unit‑owner responsibility.

What your HO‑6 insures

Your HO‑6 policy typically covers personal property, personal liability, loss of use, and interior upgrades you have made. It should also include loss assessment coverage, which helps pay your share if the association assesses owners for a master deductible or uncovered loss.

Why the policy type matters in Belmont

Belmont has both historic conversions and newer townhome‑style condos. Older conversions often lean toward bare‑walls coverage, which shifts more interior costs to you after a loss. Newer townhome communities more often carry broader coverage. Always confirm the policy type before you write an offer.

What to check in the master policy

Coverage form and limits

Review the declaration page for the named insured, policy period, insurer, and building coverage limit. Note whether the form is all risks or named perils, and whether it is walls‑in or walls‑out. Check for any special endorsements listed.

Deductibles and allocation

Master policy deductibles can be significant. Associations may allocate deductibles by unit factor, equally across units, or to the unit where damage occurred. Your potential share depends on what the bylaws and declaration state. A higher deductible increases the importance of HO‑6 loss assessment coverage.

Key endorsements and gaps

Look for these items on the master policy and understand how they interact with your HO‑6:

• Ordinance or law: covers code upgrade costs when rebuilding older structures. Important for historic Belmont buildings.
• Equipment breakdown or boiler and machinery: valuable for properties with central boilers or elevators.
• Flood: standard master policies typically exclude flood. Separate flood coverage may be required if a unit is in a Special Flood Hazard Area.
• Earthquake: usually excluded and may require a separate endorsement.
• General liability: protects common areas. Note the limit.
• Fidelity or bond: protects against theft or embezzlement by association officers or staff.

If the master policy does not include a key endorsement, plan your HO‑6 and budget accordingly.

Reading documents with confidence

Request these before you offer

Ask the seller or manager for:

• Master policy declaration page and certificate of insurance
• Bylaws, declaration, and any insurance provisions
• Current budget, most recent financials, and reserve study
• Board meeting minutes for the last 12 to 24 months
• Claims history for the past 5 to 10 years
• Any pending capital projects or planned assessments

This package helps you see coverage, deductibles, reserves, and recent claims trends.

How to read the certificate and declarations

Scan for insurer name and financial strength, coverage form, building limit, and all deductibles. Confirm endorsements like ordinance and law, flood, earthquake, equipment breakdown, and fidelity. Note cancellation provisions and who gets notice. Watch for exclusions that may be relevant to older buildings.

Budgets and reserves to review

Look at the insurance line in the operating budget and any year‑over‑year increases. Compare the reserve balance to the reserve study. A low reserve relative to projected needs can lead to special assessments, including assessments for deductibles after a claim.

Questions for the association

Ask clear, practical questions:

• What is the current master deductible and how is it allocated among owners?
• Has the association had major claims recently? Were owners assessed?
• Are there upcoming insurance renewals that may raise premiums or change coverage?
• Does the association carry flood or earthquake coverage? If not, why?
• Are unit boundaries and insurance responsibilities clearly defined in the declaration?

The answers will show your likely exposure and whether your HO‑6 should be adjusted.

Belmont property types and insurance

Historic conversions

Older multi‑unit conversions in Belmont may include shared systems, masonry exteriors, and aging mechanicals. Coverage can be more complex, and boundaries between association and owner responsibilities may be less clear. You should:

• Confirm if the master policy is bare walls
• Add improvements and betterments to your HO‑6 if interiors are on you
• Consider higher loss assessment limits and water backup coverage
• Pay attention to ordinance or law coverage for code‑driven cost increases

Newer townhome‑style condos

Purpose‑built communities since the 1990s often carry clearer walls‑in master coverage and have separate mechanicals per unit. You still need HO‑6 coverage for personal property, liability, loss of use, and loss assessment. Verify the master scope so you neither under‑insure nor over‑insure interior components.

Local notes on flood and codes

Belmont is not broadly high risk for flooding, but pockets near streams can still see issues. Lenders will rely on flood determinations for the specific address. Older structures may trigger code upgrades during repairs, which is why ordinance or law coverage can be so important.

How insurance impacts your costs and offer

Out‑of‑pocket risk

A high master deductible or a policy gap can lead to special assessments. If interiors are your responsibility, a claim can be expensive without the right HO‑6 limits. Factor these risks into your purchase budget and emergency reserves.

Monthly fees and future assessments

Insurance premiums influence condo fees. Rising premiums can push fees up mid‑year or lead to special assessments. Review recent renewal history in the minutes and budget to gauge trend and risk.

Lender expectations and offer strength

Lenders will want to see adequate master coverage and typically require HO‑6 coverage. You can strengthen your offer by:

• Confirming the master deductible and aligning your HO‑6 loss assessment limit
• Reviewing the COI, budget, and minutes during your contingency period
• Showing you understand the association’s insurance stance, which signals lower closing risk

Be careful with contingency decisions. Only adjust them after you have verified the association’s insurance and reserves.

Your buyer checklist

Use this quick list to stay organized:

• Confirm master policy type: walls‑in or bare walls
• Note deductibles and how they are allocated among owners
• Check endorsements: ordinance or law, equipment breakdown, flood, earthquake, fidelity
• Review the budget and reserve study for premium trends and funding health
• Read recent board minutes for claims, assessments, and renewal issues
• Align your HO‑6: improvements and betterments if needed, water backup if appropriate, loss assessment limits at least equal to the master deductible
• Keep lender needs in mind and have your HO‑6 quote ready

Putting it all together

You do not need to be an insurance expert to buy smart in Belmont. A focused document review, clarity on deductibles, and a right‑sized HO‑6 can prevent costly surprises and help you write a confident offer. If you want a thoughtful, local advocate to help you evaluate risk and strategy while you shop, Sarah Shimoff is here to guide you.

FAQs

What is a condo master policy vs. an HO‑6 policy?

• The master policy insures the building and common areas, while your HO‑6 covers your belongings, liability, loss of use, and often interior finishes depending on the master policy type.

How much loss assessment coverage should Belmont buyers carry?

• Aim for a limit that meets or exceeds the master deductible shown in the policy, since deductibles are commonly assessed to owners after a claim.

Who pays the master deductible after a claim in Massachusetts?

• It depends on the condominium’s declaration and bylaws; deductibles may be split by unit factor, equally, or charged to the unit where damage occurred.

Do Belmont condos need flood insurance?

• It depends on the property’s flood zone and lender requirements; standard policies exclude flood, so separate coverage may be needed in designated flood areas.

How do older Belmont conversions affect my HO‑6 needs?

• Older conversions may be bare walls and trigger code upgrades after a loss, so consider improvements and betterments coverage, ordinance or law, and higher loss assessment limits.

Can insurance issues affect my mortgage approval or timeline?

• Yes, lenders review master coverage and may require HO‑6; gaps or high deductibles can prompt extra conditions and delay closing if not addressed early.