What Most People Get Wrong About This
The usual line: the association insures the building, so a condo or townhome owner only needs a little policy for furniture and clothes.
What's actually true: the line between the association's policy and yours is drawn by your declaration, not by common sense, and it moves from one community to the next. Minnesota law lets the association leave your finished flooring, cabinets and wall finishes off its policy, and it lets the board pass its own deductible to the owners whose units were damaged, with no dollar cap in the statute (Minn. Stat. 515B.3-113). After a hailstorm or a burst pipe two floors up, that's often the biggest bill an owner sees.
What to do instead: read the association's documents first, then build the HO-6 to fill the exact gap they leave, starting with loss assessment coverage sized to the master policy deductible.
If you own a condo or a townhome in Minnesota, you pay for insurance twice: once through your association dues and once on your own policy. That's the whole design. The two policies are supposed to fit together like puzzle pieces, and trouble starts when they don't, either because there's a gap nobody covers or because the association's deductible turns into an assessment you never planned for. This guide goes one level deeper than our Minnesota homeowners insurance guide on the one question that matters most for condo and townhome owners: who covers what, and how you find out for your own building.
- Association deductible
- AssessableMinn. Stat. 515B.3-113(b)
- Loss assessment
- Policy at loss paysMinn. Stat. 65A.3025 (2024)
- Resale certificate
- 10 daysAfter an owner's request (515B.4-107)
- Metro associations
- About 4,200Seven-county metro, 2025
What does an HO-6 cover that the association's master policy doesn't?
Short answerThe master policy covers the common elements and, in shared-wall buildings, the units' structure; your HO-6 covers whatever the declaration leaves to you, plus your belongings, your liability, extra living costs and assessments.
Minnesota's Common Interest Ownership Act sets the floor for the association's side. Under Minn. Stat. 515B.3-113, the association must carry property insurance on the common elements at full insurable replacement cost, plus commercial general liability, "to the extent reasonably available." When units share or have contiguous walls, siding or roofs, that property insurance must include the units too. In plain English: in a typical condo building or a row of attached townhomes, the association's policy covers the structure you live in.
Then comes the important exception. The same subsection says the association's insurance "need not cover" seven kinds of things inside the units: ceiling or wall finishing materials, finished flooring, cabinetry, finished millwork, electrical, heating, ventilating and air-conditioning equipment and plumbing fixtures serving a single unit, built-in appliances, and other improvements and betterments, "regardless of when installed." Whether your association covers any of those is up to its declaration and its board. Here's how the two policies usually divide the work:
Common elements and shared-wall units
Roofs, siding, hallways, the clubhouse and, where units share walls or roofs, the units' structure, at full insurable replacement cost when reasonably available.
Common-area liability
Commercial general liability for the association and its board, for injuries on the common elements like the parking lot or the pool deck.
Interior finishes and upgrades
Whatever your declaration leaves to you: flooring, cabinets, wall finishes, fixtures, and the upgrades you or a past owner added.
Personal property
Furniture, clothes, electronics and what's in your storage locker, subject to the policy's covered causes of loss and special limits.
Personal liability and loss of use
Injuries and damage you're responsible for inside your unit, plus extra living costs if a covered loss forces you out while repairs happen.
Loss assessment
Your share of a covered loss the association passes to owners, including, on many policies, an assessment for the master deductible.
One more rule worth knowing: if you and the association both insure the same property when a loss happens, the statute makes the association's policy primary (515B.3-113(d)(4)). Your HO-6 isn't there to duplicate the master policy. It's there to cover what the master policy leaves out.
How do you tell whether your association covers bare walls, single entity or all-in?
Short answerRead the insurance section of your declaration and the association's annual report, which Minnesota law requires to describe the coverage and say which interior items the association insures.
Insurance people use three informal labels for how far a master policy reaches into the units. None of them appears in Minnesota's statute, and policies don't always use them, so treat them as typical patterns, not legal categories. Your documents decide which one you actually have:
| Typical pattern | What the master policy usually includes | What your HO-6 usually needs to cover |
|---|---|---|
| Bare walls | The structure and common elements, stopping short of most interior finishes | Flooring, cabinets, wall and ceiling finishes, fixtures and every upgrade, often the biggest dwelling-coverage number on an HO-6 |
| Single entity | The structure plus the unit's original, as-built finishes | Anything upgraded since the unit was built, by you or by a previous owner |
| All-in | The structure plus interior finishes, sometimes including upgrades | Your belongings, liability and assessments; less building coverage, though the association can assess the extra cost of covering upgrades |
| Common areas only | Shared land, roads, pools or buildings, not your home | The whole structure, often on a full homeowners policy (more below) |
Where to look
Start with the declaration's insurance and maintenance sections. They say what the association insures and what each owner must insure, and the declaration controls even if the board has historically bought broader coverage. Then find the association's latest annual report. If your community is governed by the Act, Minn. Stat. 515B.3-106 requires that report to include "a detailed description of the insurance coverage provided by the association," including a statement of which of those seven interior items the association insures, and a copy goes to every owner at or before the annual meeting. That one paragraph usually tells you which pattern you're in.
Also check the master policy's exclusions, not just its scope. In a 2024 survey of Minneapolis–St. Paul area associations by the HOA Leadership Network, 23 of the 62 associations that answered the question (37%) reported limitations or exclusions on their master policies, most often grills on decks and matching siding or other materials. It's a small, self-selected sample, posted with the meeting materials of the Legislature's working group on common interest communities, but it shows why the declarations page of the master policy belongs on your reading list.
Your upgrades are usually yours to insure
If you've replaced carpet with hardwood, put in quartz counters or finished a lower level, assume the upgrade is your responsibility until your documents say otherwise. Two parts of 515B.3-113 explain why. Subsection (b) lets the association leave "other improvements and betterments" off its policy no matter when they were installed, and if it does cover them, it may assess the increased cost against the units that have them. Subsection (h) says the cost of repairing a unit beyond the insurance proceeds is paid by that unit owner. So size the building portion of your HO-6 to what it would cost to replace every finish your documents make yours, including what a past owner added. Keep photos and receipts.
Check how that building coverage is written, too. Many unit-owner forms cover the unit's building items only for a list of named causes of loss unless you broaden them by endorsement, and sewer or drain backup is a separate purchase. The Minnesota Department of Commerce says homeowners "must purchase a separate product or endorsement" for sewer backup and that it isn't flood coverage. Your declarations page and endorsements show what you actually have. Winter water losses get their own walkthrough in our frozen pipes guide.
Can a Minnesota association make you pay its master policy deductible?
Short answerYes, under Minn. Stat. 515B.3-113(b) the association may pay its deductible as a common expense, assess it against affected units "in any reasonable manner," or require affected owners to pay it directly, with no dollar cap.
This is the part of Minnesota condo law that surprises owners most. When a claim involves damage to a unit or units, the statute gives the association three choices for the deductible on its own policy:
- Pay it as a common expense, so every owner shares it through dues or reserves.
- Assess it against one or more of the units affected "in any reasonable manner."
- Require the owners of one or more affected units to pay it directly.
The only limit the statute puts on the second option is "reasonable." There's no dollar ceiling. Which choice your board makes is often spelled out in the declaration or in a board policy, and that's the document to ask for.
Why it matters now: master policies are under pressure. The HOA Leadership Network's 2024 survey of Twin Cities associations reported higher master premiums, fewer bids and more nonrenewals. In December 2025, the HOA Leadership Network's president, Lynn Boergerhoff, told the state's Task Force on Homeowners and Commercial Property Insurance that the seven-county metro has about 4,200 common interest communities and HOAs with 202,000 housing units, and listed deductibles and loss assessment, including wind/hail deductibles of 5 to 10 percent of building replacement cost, among the factors associations can control. A percentage deductible is typically figured on the building's insured value, not on your unit, which is why it can be far larger than anything on your own policy. Our hail damage guide explains how percentage wind/hail deductibles work.
A quick way to gauge your exposure: find the master deductible, including any separate wind/hail or water deductible, and ask the board how it allocates deductibles. If a storm damages only your building, or a leak damages only your unit, a large share of that number could come to you.
What changed in 2026
Minnesota is making the deductible harder to miss. A 2026 law (Laws 2026, chapter 82) adds the amount of the association's deductible to the annual report, along with a notice in capital letters that reads: "IF THE ASSOCIATION LEVIES A LOSS ASSESSMENT, THE UNIT OWNER IS PERSONALLY RESPONSIBLE FOR PAYING IT, EVEN IF THE UNIT OWNER DOES NOT HAVE SUFFICIENT INSURANCE COVERAGE." That section carries no effective date of its own, so under Minnesota's default rule (Minn. Stat. 645.02) it took effect August 1, 2026. According to the Minnesota House Research Department's summary (May 22, 2026), the act also adds deductible and owner-liability information to purchase disclosure statements and resale paperwork, and most of the act takes effect January 1, 2027.
How much loss assessment coverage does a Minnesota condo owner need?
Short answerEnough to pay the share of the master policy deductible your association could assess you, so start from that deductible, including any wind/hail percentage, and check whether your policy limits deductible-based assessments.
Loss assessment coverage pays your share of a covered loss that the association charges back to owners. On many HO-6 policies the built-in limit is small and can be raised by endorsement. That small default made sense when master deductibles were small. It makes less sense when the deductible is a percentage of a building's value.
Minnesota settled one long-running question in 2024. Under Minn. Stat. 65A.3025, when an association charges a loss assessment to an owner who owned the unit both when the loss happened and when the assessment was charged, the policy in force at the time of the loss pays it, once the statute's conditions are met and "subject to the limits provided in the policy," even if the assessment arrives months later. If the unit changed hands before the assessment was charged, the policy in force when it was charged pays instead. A 2025 law makes the rule apply to policies issued or renewed on or after August 1, 2024 (Laws 2025, 1st Special Session, chapter 4). In plain English, the policy you had when the storm hit is the one to call, even if the bill shows up after you've switched carriers.
That statute doesn't change what the coverage pays for. The assessment still has to come from a loss your own policy would cover, and the policy's limits and exclusions still apply. An assessment for flood damage, for example, typically won't be paid by an HO-6 that excludes flood.
The fine print to ask about by name
- Deductible assessments. Some unit-owner policies pay a deductible-based assessment only up to a lower sub-limit, or don't let a raised loss assessment limit apply to deductibles at all. Policy wording varies by insurer and edition, so ask us to show you the language.
- Per-occurrence limits. Loss assessment is usually a limit per loss. Two storms in one season can mean two assessments.
- Which perils. If the association's loss came from a cause your HO-6 excludes, your loss assessment coverage typically won't respond.
Smart-cheap vs dangerous-cheap
| The decision | Smart-cheap | Dangerous-cheap |
|---|---|---|
| Loss assessment limit | Raise it to cover the master deductible you could be assessed | Keep the built-in limit without knowing the master deductible |
| Building coverage on the HO-6 | Size it to the finishes your declaration makes yours | Guess low because "the HOA covers the building" |
| Your own deductible | Raise it to an amount you could pay tomorrow | Raise it while also carrying a thin loss assessment limit |
| Water coverage | Add sewer and drain backup if your unit has a floor drain or sits low | Assume the master policy handles anything wet |
| Liability | Carry enough to protect your savings, and consider an umbrella | Assume the association's liability covers your unit |
Bundling an HO-6 with your car insurance is one of the cleaner ways to make room in the budget for a higher loss assessment limit, and our guide to bundling home and auto in Minnesota covers how that works, where available. When you're ready, see how we build condo coverage, starting with Farmers and looking at additional carriers when Farmers isn't the right fit.
What if your townhome association only insures the common areas?
Short answerThen you insure the whole structure yourself, often on a full homeowners policy rather than a unit-owner form, because the association's policy stops at the shared land and amenities.
Not every townhome is insured like a condo. The statute's requirement to include units in the master policy only kicks in when units share or have contiguous walls, siding or roofs. In a community of detached townhomes or twin homes that don't share a wall, or where the declaration makes each owner responsible for their own building, the association may insure little more than the common areas: the private roads, the pool, the clubhouse, the green space. Your roof, siding and walls are then yours to insure, and an HO-6 written for a condo unit may not be the right tool.
Age matters too. Minnesota's Act generally doesn't reach townhome associations created before June 1, 1994 unless they opted in, so an older community may follow its own declaration and older law. We cover that caveat in our Eagan home insurance guide, where about one housing unit in five is a single-family attached home, per Census estimates. If you're elsewhere in the south metro, our Dakota County home insurance guide covers the local hail and housing picture.
Which documents should you request from your association before you buy or renew?
Short answerThe declaration and bylaws, the latest annual report, the master policy's declarations page or certificate, the deductible schedule, the board's deductible policy and, when you're buying, the resale disclosure certificate.
Ten minutes with the right paperwork beats any amount of guessing. Here's the checklist we work from:
- The declaration, with every amendment. Its insurance and maintenance sections draw the line between your responsibility and the association's.
- The bylaws and any rules on insurance or claims. Some associations require owners to carry an HO-6 or specific limits, even though state law only says owners "may" buy their own coverage (515B.3-113(f)).
- The latest annual report. Its insurance description should say which interior items the association insures, and a 2026 law adds the deductible amount to that report.
- The master policy's declarations page or certificate of insurance. Under 515B.3-113(g), the insurer must issue certificates to any unit owner on request, and the policy can't be canceled until 60 days after notice of the proposed cancellation is mailed to the association, each unit owner and each secured party holding a certificate.
- The full deductible schedule. Ask for the all-perils deductible, any wind/hail percentage deductible and any separate water deductible.
- The board's deductible allocation policy. It tells you which of the three statutory options your association uses.
- The resale disclosure certificate, if you're buying. Under Minn. Stat. 515B.4-107, the association must furnish it within ten days after a unit owner's request, and it lists the insurance the association provides and which interior items it insures. The association may charge a reasonable fee.
- Any notice that coverage wasn't available. If the association couldn't get the required insurance, the statute requires it to notify every owner. If you got one of those letters, call us before your next renewal.
Then bring it to us. We'll read the documents with you, quote an HO-6 or homeowners policy that fits the gap, and show you what a loss assessment limit sized to your building's deductible would look like. Our office is in Eagan, and our bilingual team works in English and Spanish. Call (651) 252-6655 or start a quote online.
The Bottom Line
If you do one thing after reading this, find out your association's master policy deductible and compare it with the loss assessment limit on your own policy. If the first number is far bigger than the second, that gap is yours. Minnesota law lets the board pass that deductible to the owners of damaged units, and it puts no dollar cap on it.
After that, let the documents decide the rest. The declaration says whether you're in a bare-walls, single-entity, all-in or common-areas-only community. The annual report says which interior items the association insures. Your HO-6, or your full homeowners policy for a townhome the association doesn't insure, should start exactly where those documents stop, with your upgrades, your belongings, your liability and your assessments covered.
Condo and townhome insurance isn't complicated once you see both halves side by side. It just has to be built that way on purpose. For how we put unit-owner coverage together, see our condo insurance page.
Related Questions Minnesota Condo and Townhome Owners Ask
Does Minnesota law require condo owners to buy an HO-6 policy?
No. The Minnesota Common Interest Ownership Act says unit owners may obtain insurance for their own benefit in addition to the association's (Minn. Stat. 515B.3-113(f)); it doesn't require it. Your association's declaration or bylaws can require owners to carry coverage, and a mortgage lender typically will. Even where nobody requires it, the association's policy generally doesn't cover your belongings, your personal liability or a loss assessment, so most owners need their own policy.
Will my HO-6 pay if the association assesses me for its deductible after a hailstorm?
Often, up to your loss assessment limit, if the hail damage is a loss your own policy would cover. Minnesota lets the association assess its deductible to the owners of damaged units in any reasonable manner (Minn. Stat. 515B.3-113(b)). Some unit-owner policies pay deductible-based assessments only up to a lower sub-limit, so check the wording and raise the loss assessment limit to the master deductible you could be charged.
Which policy pays a loss assessment if I sold my Minnesota condo before the assessment was charged?
Under Minn. Stat. 65A.3025, when ownership changes between the loss and the assessment, the unit-owner policy in force when the assessment is charged pays it, subject to that policy's limits. When the same owner held the unit both times, the policy in force at the time of the loss pays. The rule applies to policies issued or renewed on or after August 1, 2024.
Is the association's master policy or my HO-6 primary when both cover the same damage?
In a community governed by the Minnesota Common Interest Ownership Act, the association's policy is primary. Minn. Stat. 515B.3-113(d)(4) says that if a unit owner has other insurance covering the same property at the time of a loss, the association's policy is primary insurance. Your HO-6 is meant to cover what the master policy leaves out, such as interior finishes your declaration assigns to you, your belongings and assessments.
How long does a Minnesota association have to provide a resale disclosure certificate?
Ten days. Under Minn. Stat. 515B.4-107, the association must furnish the resale disclosure certificate within ten days after a unit owner's request, and it may charge a reasonable fee. The certificate describes the insurance the association provides for owners and which fixtures and finishes inside the unit it insures, which makes it a useful starting point for sizing a buyer's HO-6.
Last reviewed by Ryan Block, licensed Minnesota insurance agent, on October 27, 2026. Minnesota statutes cited (515B.1-102, 515B.3-106, 515B.3-113, 515B.4-107 and 65A.3025) were checked against revisor.mn.gov on that date, which still shows the 2025 statutes. Laws 2026, chapter 61 (S.F. 3622, approved April 29, 2026), an act making clarifying, technical and conforming changes to the Common Interest Ownership Act, amends 515B.1-102, 515B.3-106, 515B.3-113 and 515B.4-107, and Laws 2026, chapter 82 also amends 515B.3-106 and 515B.4-107; those 2026 changes aren't yet shown in the Revisor's statute text, so confirm current wording with the Revisor. Session laws checked: Laws 2026, chapter 82 (with the House Research act summary of May 22, 2026), Laws 2025, 1st Special Session, chapter 4, and Minn. Stat. 645.02. Other sources: the Minnesota Department of Commerce sewer backup page, the HOA Leadership Network's 2024 survey posted with the November 2024 materials of the Legislature's Working Group on Common Interest Communities and Homeowners Associations, and its December 3, 2025 presentation to the Task Force on Homeowners and Commercial Property Insurance. This guide is general information, not legal advice or a substitute for reading your own policy and association documents. Coverage depends on your specific contract, and not all coverages and discounts are available from every insurer.