What’s the Difference Between “Walls In” and “Walls Out” Condo Insurance?

When you buy a condo, one of the most confusing parts of your insurance requirements is understanding what you need to cover versus what your condo association’s master policy already covers. The two most common terms you’ll hear are “walls in” and “walls out.”

Walls Out (Master Policy Coverage)

A walls-out policy is the condo association’s master policy. It generally covers:

• The building’s structure

• Exterior elements (roof, siding, hallways, common areas)

• Mechanical systems serving the building as a whole

Think of it as covering everything that would remain if you could pick your unit up and “shake it” — the outer shell and shared components stay covered by the association.

Walls In (Unit Owner’s HO-6 Policy)

Your personal condo policy — called an HO-6 — provides “walls-in” coverage. This typically includes:

• Interior walls and finishes

• Cabinets, flooring, fixtures, and built-ins

• Personal property

• Liability coverage inside your unit

Walls-in is essentially everything from the drywall inward. If a burst pipe damages your kitchen cabinets, that’s your HO-6. If the roof leaks into multiple units, that’s usually the master policy.

Why It Matters

Every condo association sets its own rules. Some master policies include limited interior coverage, others don’t. If you assume the wrong thing, you could be under-insured — and the board won’t be responsible for those gaps.

Next Step

Before closing, always request the condo’s master insurance certificate and declarations page. This allows you (and your insurance agent) to match your HO-6 policy to the exact coverage gaps so you’re fully protected on day one.

All content is for informational purposes only and does not constitute legal advice.