By Paul Della · Licensed Insurance Agent · The Della Agency
Two condo owners in identical units across town from each other can need completely different insurance — not because of anything they did, but because their associations bought different master policies. One covers the interior finishes. The other stops at the unfinished walls. That single difference can swing your HO-6 dwelling coverage need by tens of thousands of dollars, and most owners have never checked which one applies to them.
A bare walls (studs-out) master policy covers the building only to your unit's unfinished walls — drywall, flooring, cabinets, fixtures, and everything inside are your HO-6's responsibility. An all-in (single entity) policy generally includes the original builder-installed finishes. Under bare walls, your HO-6 has to be able to rebuild the entire interior. Under all-in, it mainly needs to cover the upgrades you installed, plus belongings, liability, and assessments. Either way, renovations you made are typically yours, and associations can change policy type at renewal. Find out which you have by requesting the master policy declarations page and the insurance section of your bylaws — in writing.
If you only learn one thing about your condo insurance, make it this: which type of master policy your association carries. It's the fact that determines how much coverage you need, what a claim actually pays, and whether you're carrying a dwelling limit that's roughly right or dramatically short. And it varies building to building with no standard.
This guide breaks down the two main structures, how to identify yours, what each one demands from your HO-6, and the upgrade gap that catches owners under both. We're a licensed New York agency in North Babylon, and this is the first question we ask any condo owner who calls us.
What Is a Bare Walls Master Policy?
The short answer: the association covers the structure only to your unit's unfinished walls. Everything from the drywall inward is yours.
A bare walls policy — you'll also hear studs-out or original specifications — draws the line at the bare structural shell. The association insures the building's frame, roof, exterior, and common areas. Inside your unit, the responsibility line starts essentially at the studs.
That means your HO-6 is on the hook for the drywall itself, flooring, cabinets, countertops, built-in appliances, interior fixtures, and all your finishes. After a covered fire or water loss, your policy isn't topping up a rebuild — it is the rebuild for everything inside your unit. Owners in bare walls buildings frequently carry dwelling limits far below what that would actually cost, because they were never told what structure their building uses.
What Is an All-In Master Policy?
The short answer: the association's coverage extends to the original builder-installed fixtures and finishes inside each unit.
An all-in policy — also called single entity — reaches further into the unit. It generally covers the building plus the finishes as originally installed: the original drywall, flooring, cabinetry, and fixtures that came with the unit when the building was completed.
This meaningfully reduces what your HO-6 has to carry, but it does not eliminate the need for one. You still need coverage for your belongings, your personal liability, your loss of use, your loss assessment exposure, and — the part people miss — any upgrades you installed after purchase. Our guide to condo master policies vs. HO-6 covers how the two policies divide responsibility overall.
| Item | Bare walls | All-in |
|---|---|---|
| Roof, exterior, common areas | Association | Association |
| Original drywall & flooring | You | Association |
| Original cabinets & fixtures | You | Association |
| Your renovations & upgrades | You | You |
| Belongings, liability, loss of use | You | You |
What If It's Neither? The Modified Middle Ground
The short answer: plenty of master policies sit between the two, covering some interior components and excluding others — which is why the document matters more than the label.
Real-world master policies don't always announce themselves as one type or the other. Many are modified, carving up responsibility in building-specific ways: covering original drywall but not flooring, or including fixtures but excluding appliances. Some declarations pages never use the words "bare walls" or "all-in" at all, describing covered property in their own language instead.
This is exactly why "what type is it?" sometimes has to become "what does the policy actually say about covered property, and what do the bylaws assign to unit owners?" If the answer isn't clear from the declarations page, the association's insurance agent or the governing documents will have it.
How Do You Find Out Which One You Have?
The short answer: request the master policy declarations page and the insurance section of your bylaws — in writing, from the board or property manager.
Three steps get you a reliable answer:
- Request the master policy declarations page. Read how it describes covered property inside units.
- Read the insurance section of the declaration and bylaws. These define what's common property versus unit property and what owners must insure.
- Ask for written confirmation from the board, property manager, or the association's insurance agent if the documents are ambiguous.
What to avoid: relying on a neighbor, a real estate listing, or memory of what someone said at a board meeting. These details get misremembered constantly, and the difference between being right and wrong is the entire interior of your unit. If you're buying, request all of this during due diligence — it affects both your insurance cost and your real exposure as an owner.
How Much Dwelling Coverage Do You Need Under Each?
The short answer: under bare walls, enough to rebuild the entire interior at today's construction costs; under all-in, enough to replace your upgrades — plus a cushion in both cases.
Under a bare walls master policy, the calculation is essentially a construction estimate for your unit's interior: drywall, flooring, cabinetry, countertops, fixtures, appliances, and finishes, priced at current labor and material costs. That's rarely a small number, and it's rarely what a default quote-form limit suggests.
Under an all-in policy, you're insuring the delta between original condition and current condition — every renovation and upgrade you've made. If you gutted the kitchen and baths, that delta can itself be substantial.
In both cases, build in a cushion. Associations can narrow master coverage at renewal, construction costs move, and an under-sized dwelling limit is the most common condo coverage gap we find. The related question of whether contents are settled at replacement cost or depreciated value matters too — our guide to replacement cost vs. actual cash value explains why.
The Upgrade Gap That Catches Owners Under Both
The short answer: renovations you install are generally your responsibility regardless of master policy type — and most owners never raise their limit after the work is done.
This is the gap that spans both structures. Master policies — even all-in ones — typically cover the unit as originally built. The custom cabinetry, upgraded flooring, quartz counters, and renovated bathroom you added afterward generally fall to your HO-6 under improvements and betterments coverage.
The failure mode is predictable: an owner spends significantly renovating, feels better protected than before, and never touches their insurance. Their dwelling limit still reflects the unit as purchased. A covered loss then pays to restore something closer to the original condition than to what they actually built.
Two owners in the same building each carry the dwelling limit their agent set at closing. The association switches from an all-in master policy to bare walls at renewal to control premium, and notifies owners in a paragraph of the annual meeting minutes. Owner A asks their agent about it and raises the HO-6 dwelling limit to cover the full interior. Owner B never sees the notice. When a pipe fails a year later, Owner A's interior is rebuilt; Owner B's policy covers a fraction of it, because it was sized for a building whose master policy no longer exists. (Illustrative; your policies and association documents control.)
The Bottom Line on Bare Walls vs. All-In
Which master policy your association carries is the most consequential fact about your condo insurance, and it's building-specific with no standard. Bare walls stops at your unfinished walls and leaves the entire interior to your HO-6, which means substantial dwelling coverage. All-in generally includes the original builder-installed finishes, which lowers that requirement without eliminating it. Many policies sit somewhere between, which is why the document beats the label.
Whichever you have, two things stay true: your upgrades are generally yours to insure, and associations can change policy type at renewal without much fanfare. So request the master policy declarations page and the insurance sections of your bylaws, get the answer in writing, and have your HO-6 dwelling limit sized against it. Send us those documents and we'll do that comparison with you for free — it's the fastest way to find out whether your limit fits your building.
Learn more about our condo insurance coverage, or request a free quote and we'll review your unit's coverage.
Frequently Asked Questions
A bare walls master policy, sometimes called studs-out, covers the building structure only up to the unfinished walls of your unit. Everything inside that line is yours to insure: drywall, flooring, cabinets, countertops, built-in appliances, plumbing and electrical fixtures within the unit, and all your improvements. Under this structure your HO-6 needs substantial dwelling coverage, because after a covered loss your policy is rebuilding the entire interior rather than just replacing upgrades.
An all-in master policy, also called single entity, generally covers the building plus the original builder-installed fixtures and finishes inside each unit. That typically includes the original drywall, flooring, cabinets, and fixtures as they existed when the building was completed. Your HO-6 still needs to cover renovations and upgrades you installed, your personal belongings, your liability, loss of use, and loss assessments, so an all-in master policy reduces your dwelling coverage need without eliminating it.
Ask your board or property manager for the master policy declarations page and the insurance section of your declaration and bylaws, and get the answer in writing. The declarations page may not use the words bare walls or all-in, so you may need to read how the policy describes covered property, or ask the association's insurance agent directly. Do not rely on what a neighbor or a real estate listing says, because these details are frequently misremembered.
Under a bare walls policy you generally need enough to rebuild your entire unit interior at current construction costs, which is a substantial figure in most markets. Under an all-in policy you generally need enough to replace the improvements and upgrades you installed, plus a cushion in case the association narrows coverage later. In both cases the number should be based on actual construction costs for your unit rather than a default limit offered on a quote form.
Generally no. All-in master policies typically cover the original builder-installed finishes, not upgrades an owner added afterward. So a renovated kitchen with custom cabinetry and upgraded countertops usually falls to your HO-6 under improvements and betterments coverage. This is one of the most common coverage gaps in condo ownership, because owners renovate substantially and never revisit their dwelling limit.
Find Out If Your Dwelling Limit Fits Your Building
Send us your association's master policy declarations page and your HO-6 declarations. We'll tell you which structure you're in and whether your limit would actually rebuild your unit. Free, no obligation.
✓ Last reviewed by the Della Agency team on . We refresh our guides quarterly — coverage rules, costs, and New York insurance regulations change.
This guide is general information, not coverage or legal advice. Master policy structures, terminology, and what each covers vary by association and policy — read your association's master policy, declaration, and bylaws, and confirm in writing with the association or its insurance agent. Associations may change master policy type at renewal. HO-6 coverage terms vary by insurer. Examples are illustrative.