How does condo insurance handle shared walls?

Complete Guide to Shared Wall Coverage in Condo & Townhome Insurance

Why This Question Matters for Colorado and Utah Residents

Shared walls are one of the trickiest coverage issues for condo and townhome owners across Colorado and Utah. Here's why local residents need clarity:

• Master Policy Gaps Are Common: In Northern Colorado and the Wasatch Front, many associations have high-deductible master policies that leave owners responsible for shared-wall damages that start inside units or aren't clearly addressed in the HOA documents.
• Hail, Water, and Fire Claims Are On the Rise: In 2023, 28% of condo claims in Northern Colorado involved hail damage affecting building exteriors and shared walls, while 33% involved water damage (often from one unit into another).
• Special Assessment Surprises: It’s not unusual for owners to face $5,000–$15,000 special assessments when a major claim hits a shared wall or roof, especially if deductible buy-down coverage isn’t in place.

What Most People Get Wrong

The biggest local misconception is that "the HOA will handle anything with shared walls." In reality, many master policies only address the building structure, leaving interior repairs—especially those affecting walls, floors, or fixtures—up to individual owners. Another common error: thinking "walls-in" coverage automatically includes everything attached to or inside shared walls, which isn't always the case in either Colorado or Utah.

With regional claims data showing a spike in water intrusion and hail, it's more important than ever to understand where coverage lines are drawn and which policy covers what.

The Complete Picture

Condo and townhome insurance (typically called an HO-6 policy) is designed to cover your personal property and everything from the walls-in—that usually means your finishes, floors, fixtures, and personal belongings. But when damage starts or spreads through a shared wall (like after a hailstorm, water leak, or fire), coverage responsibility often "splits" between the master policy (the HOA’s insurance) and your own policy. The HOA’s master policy generally covers the exterior structure, roof, and main components of shared walls; anything inside your unit—like drywall, cabinets, paint, or built-ins—is usually your responsibility. But this division isn't always clear, especially when local master policies have high deductibles or exclude certain risks (like water backup, common in older Colorado complexes). That's why loss assessment coverage and endorsements for water or hail are so critical here.

If you live along Colorado's Front Range (like in Fort Collins, Denver, or Boulder) or in Utah's high-density communities (Salt Lake City, Park City), reviewing your HOA bylaws and working closely with a local agent ensures you don’t face a big out-of-pocket bill if the "gray area" of a shared wall claim arises.

Making the Right Decision for Colorado and Utah Residents

Question 1: What does your association’s master policy really cover with shared walls?

Don't assume all shared wall issues are covered by the HOA. Ask these key questions and check your bylaws:

• Does the master policy include “bare walls” or “all-in” coverage?
• What’s the master policy deductible (many exceed $10,000 in CO/UT)?
• Who pays if damage crosses from a neighbor’s unit into yours via a shared wall?

Question 2: Are you protected against local risks for shared elements?

Review your building’s location and history:

• Are you in a hail corridor (Fort Collins, Denver, Centennial)? Do you have endorsements for hail and appropriate loss assessment limits?
• Is your building old enough that water backup or outdated construction could cause hidden damage in shared walls? Consider water backup or ordinance/law coverage as needed.

Question 3: How would you handle a costly special assessment or major loss involving shared walls?

Think through real scenarios:

• If your HOA issues a $10,000+ assessment after shared wall damage, do you have enough loss assessment coverage?
• Do you know your deductible and coverage limits if your neighbor’s incident (leak, fire, smoke, etc.) damages your property through a shared wall?

With premiums ranging $30-$70/month for solid HO-6 coverage in CO/UT, getting the right safeguards in place is a small investment compared to the financial hit of an uncovered event.