Master Insurance Policy Claims for Multi-Family Communities | Gavnat Public Adjusters
At Gavnat Public Insurance Adjusters, we regularly work with multi-family communities—condos, townhomes, and homeowner associations—who find themselves navigating complex insurance claims after unexpected property damage. One of the most common challenges these communities face is understanding how their master insurance policy works, especially when it’s time to file a claim.
Whether you’re part of a board of directors, a property manager, or simply a resident taking initiative, knowing what’s covered under your master policy—and what’s not—can make all the difference in how well your community recovers after a loss.
What Is a Master Insurance Policy?
A master insurance policy is a policy purchased by the association or governing body of a multi-family community with dues paid by the members of the association. It generally provides coverage for shared common elements of a property and liability across the community—roofs, exterior walls, stairwells, landscaping, signage, recreational amenities, and more. It also protects against bodily injury claims that might occur in these common areas.
This coverage is separate from the insurance that individual unit or homeowners carry, which usually protects the inside of their unit, personal property, and certain upgrades.
When disaster strikes, the question of who is responsible—the association’s master policy or the homeowner’s individual policy—can quickly become contentious if not clearly understood.
What Does It Cover?
While master insurance policies can vary based on property type, carrier, and coverage selection, most include:
- Property Coverage for commonly shared structures
- General Liability Coverage for accidents or injuries on communal property
- Directors and Officers (D&O) Liability for the board’s governance negligent decisions
Optional coverages like flood, earthquake, or ordinance and law protection are often added depending on the community’s location and risk profile.
Understanding exactly what your policy covers—and where the boundaries lie between common and private property—is essential when preparing for or responding to a loss.
When Do Master Insurance Policy Claims Apply?
At Gavnat, we’ve helped associations manage claims for everything from fire damage in attached townhomes to wind or hail damage across shared roofing structures. We’ve also worked on burst pipes serving multiple units, fallen trees damaging community structures, and storm-related damage.
In each of these cases, the master insurance policy claim was critical in recovering repair costs for the association and, by extension, its residents.
The Board’s Role in the Claims Process
Once damage occurs, the community’s board or property manager is responsible for initiating the claims process, gathering documentation, and coordinating with restoration professionals. They are also responsible for communicating with residents about the impact of the event and what the association’s policy will cover.
As public adjusters, we assist boards by taking on the professional role of managing the claim: reviewing the policy, inspecting the damage, preparing the claim, and negotiating with the insurer. Our job is to protect your interests—not the insurance company’s bottom line.
Common Challenges with Multi-Home Insurance Claims
There are several pitfalls that can delay or diminish an insurance payout:
- Coverage Gaps: Not knowing where the master policy ends and individual homeowner responsibility begins can create confusion, delays, and disputes.
- Deductible Disputes: Associations are often unsure how to allocate deductibles, especially with large claims.
- Underinsurance: Many communities don’t review or update their coverage as property values change or upgrades are made.
- Adjuster Conflicts: Insurance company adjusters represent the carrier. Their goal isn’t always aligned with your full recovery. That’s why many associations bring in a public adjuster early in the process.
How to Be Proactive
Communities that prepare ahead of time see faster, smoother outcomes when damage occurs. Here are a few tips:
- Keep detailed records of all shared property and maintenance
- Document the condition of buildings and grounds with regular photos
- Review the master insurance policy annually and adjust coverage as needed
- Clarify with residents what is covered under the association’s policy versus their personal policy (HO-6 or equivalent)
- Consult with a public adjuster before disaster strikes so you have a trusted advocate ready to step in
Why Work with a Public Adjuster?
At Gavnat Public Insurance Adjusters, we advocate exclusively for policyholders. We don’t work for the insurance company. Our goal is simple: to make sure your claim is handled properly and that your community receives the full settlement it’s entitled to.
We handle everything from damage assessment to final negotiation—transparently, ethically, and professionally. For communities managing multiple buildings, stakeholders, and insurance complexities, this support can be a game-changer.
Final Thoughts
Insurance should be your safety net, not a guessing game. By understanding your master policy, knowing your responsibilities, and having the right professionals in your corner, your multi-home community can weather any storm—literally and figuratively.
If your community has experienced damage—or you just want to be prepared—reach out to Gavnat Public Insurance Adjusters for a free policy review or consultation.
Let’s make sure your coverage works when you need it most.