As public insurance adjusters who work directly with HOAs and multi-family communities, one of the most common questions we’re asked is: “What’s the difference between Bare Walls and All-In Insurance coverage—and what does it really mean for our association?”
It’s a great question—and one that can make or break your community’s recovery after a major loss. Let’s break it down.
What Is Bare Walls Coverage?
Bare Walls, sometimes called “Studs-In” or “Walls-Out,” refers to a type of insurance policy where the association’s coverage stops at the drywall or interior surface of the unit. This policy typically includes:
- The building’s structure
- Exterior walls, roof, foundation
- Common areas (hallways, stairwells, lobbies)
- Some mechanical systems (HVAC, plumbing, electric to the point of entry)
What it doesn’t include:
Interior finishes like flooring, cabinetry, countertops, fixtures, paint, and sometimes even drywall within units. These are the responsibility of the unit owner.
Key Factor: Many unit owners don’t realize their personal condo (HO-6) policy must pick up the slack—or they’re underinsured when disaster strikes.
What Is All-In Coverage?
All-In, also referred to as “Single Entity” or “Walls-In,” provides broader protection. It covers:
- Everything in Bare Walls coverage plus
- Interior walls and finishes
- Fixtures, cabinetry, built-ins, and improvements installed by either the developer or current owner
What it typically excludes:
Personal property and liability inside the unit (covered by the unit owner’s HO-6 policy).
Key Factor: This simplifies claims and avoids disputes over where responsibility starts and ends—making life easier for managers and board members during a loss.
Why This Matters After a Loss
Imagine a pipe bursts in a third-floor unit, causing water damage to the floors, drywall, cabinets, and units below. With Bare Walls, the HOA may only be responsible for the pipe and the building’s structural damage—while unit owners file separate claims for their interiors.
With All-In, the HOA policy could potentially cover all repairs to original construction, easing the burden on individual homeowners.
So, Which Is Better for HOAs?
There’s no one-size-fits-all answer. But here are some factors to consider:
| Coverage Type | HOA Responsibility | Unit Owner Responsibility | Claims Complexity | HOA Premium Cost |
| Bare Walls | Building structure & common areas only | All unit interiors | Higher (multiple parties involved) | Lower |
| All-In | Includes interiors & fixtures | Personal property only | Lower (centralized claims) | Higher |
3 Pro Tips for HOA Boards & Property Managers
- Know Your Governing Docs
Your HOA’s bylaws or CC&Rs often dictate what must be covered. Before shopping for a policy—or renewing—review these with legal counsel. - Educate Unit Owners
Especially with Bare Walls coverage, unit owners need to understand their responsibility. Consider holding annual insurance education sessions or sending out checklists. - Work With a Public Adjuster Before a Loss Happens
Having a public insurance adjuster review your policy proactively can uncover gaps in coverage or clarify gray areas in your declarations.
Final Thoughts from a Public Adjuster
When disaster strikes, confusion over what’s covered—and what isn’t—can delay recovery, damage relationships, and even lead to lawsuits. Whether your HOA carries Bare Walls or All-In insurance coverage, the most important thing is understanding the scope, educating your members, and preparing for the unexpected.
If your association has recently experienced a loss or you’re unsure whether your policy is protecting you the way it should, reach out. A licensed public adjuster can be your advocate in the claims process—helping your community recover faster and with less stress.