Table of Contents

Bare Walls Coverage: What It Is, How It Works, Example

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Updated August 10, 2023

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Definition

Bare walls coverage is an insurance policy that protects common areas and shared features in multi-family residential buildings, typically included in condominium associations' master policies.

What Is Bare Walls Coverage?

Bare walls coverage is an insurance policy for communally used features in multi-family residential buildings. This coverage is generally found in master policies for condominium associations. Usuꦺally, the cost of the premiums is in𒁃cluded in the association fees.

Key Takeaways

Bare walls coverage is an insurance policy that applies to communally used features in multi-family residential buildings.
The cost of bare walls coverage is usually included in the condo association fees.
Bare walls coverage is generally found in master policies for condominium associations.

What Does Bare Walls Coverage Include?

Bare walls coverage is used when the structure of a building is shared by many residents, which makes it difficult for any one person to carry the 澳洲幸运5官方开奖结果体彩网:insurance policy on the property. In multifamily houses or condominiums, this can refere🌌nce areas like:

Common areas
Entryways
Firewalls between units

Important

Individual unit owners need to purchase their own policies to cover any damages or losses that occur to their property. This includes fixtures, personal possessions, and 澳洲幸运5官方开奖结果体彩网:liability for injury that occurs within their units.

Example of Bare Walls Coverage

A condo association has a master insurance policy that includes bare walls coverage. If a fire occurs in one unit, destroying the building, the residents with individual contents insurance policies, such as renters, will be covered for all personal property inside their units. Additionally, owner-resident policies will commonly cover the building materials "from the studs in" to rebuild their unit.

Common areas, such as the stairwell between floors, a shared laund𓆉ry room, and a shared exercise facility, will be covered by the bare walls policy since these are common areas and do not belong to one unit owner.

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How Does a Unit's Insurance Policy Differ From a Bare Walls Policy?

A bare walls policy is sometimes referred to as a master policy. The policy that the unit owner takes out is known as an HO6 polic꧋y—or contents insurance. It is sometimes also referred to as walls in or studs in insurance, as the protections begin where the bare walls policy leaves off.

Who Commonly Purchases a Bare Walls Policy?

Since a⛦ single-unit owner cannot be asked to purchase a policy covering shared items, the con📖do association usually purchases this insurance policy.

How Do Residents Pay for a Bare Walls Policy?

The association purchases the policy and re🌊sidents share the cost through association fees.

The Bottom Line

Bare walls coverage is used when the structure of a building is shared by many residents. The common areas, entryways, and laundry rooms are some items covered under this policy. Thﷺe cost of the insurance is 🐻commonly paid for by the condominium or building association and shared among the residents through fees.

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