What is walls-in coverage?

Complete Guide to Walls-In Coverage for Condo & Townhome Owners

Why This Question Matters for Colorado and Utah Residents

Understanding walls-in coverage is essential for condo and townhome owners because the line between your responsibility and your association’s coverage can be unclear—leaving you exposed to costly surprises. Regional risks like hail, water damage, and special assessments mean every Colorado and Utah condo owner needs to know exactly what’s covered inside their home.

• High risk of water and hail damage: 33% of condo claims in Northern Colorado are for water damage, and hailstorms routinely cause structural issues. Without proper walls-in coverage, owners may need to pay thousands out-of-pocket for interior repairs.
• Master policy gaps: In Colorado, HOAs must define which parts of the building their policy covers—but many owners discover after a claim that cabinets, flooring, or personal upgrades aren’t included. Utah associations can differ in what’s considered "walls-in."
• Legal and financial changes: Colorado’s 2023 rulings mean insurers are now required to cover water damage originating from adjacent units, directly impacting condo policy requirements.

What Most People Get Wrong

Many owners assume their HOA’s master policy covers everything except personal belongings. In reality, most CO and UT master policies either stop at bare walls or original fixtures, excluding improvements, flooring, cabinets, or even some interior plumbing. Others believe all claims—especially water-related—will be covered by someone else’s policy, not realizing updated state laws may now require their individual policy to cover these incidents.

Another common misconception: loss assessment and building ordinance coverage are “nice-to-haves,” when they’re often the most crucial parts of proper condo protection given regional claim trends and increasing HOA deductibles.

The Complete Picture

Walls-in coverage (also called “studs-in” or building property coverage) applies to everything within your unit’s four walls that’s not covered by the HOA’s master policy. This typically includes:

• Drywall, paint, and wall coverings
• Flooring and baseboards
• Cabinets, countertops, sinks, and appliances (if not HOA responsibility)
• Light fixtures, electrical and plumbing within your unit
• Improvements and upgrades (e.g., wood floors, custom tile)

HO6 condo policies in Colorado and Utah are designed to fill in where master policies end. After severe weather or water events—which are increasingly common (FoCo’s hail claim frequency is the nation’s 2nd highest, and water losses make up 33% of claims)—walls-in coverage protects your investment inside the unit. Since master policies in Northern Colorado often have $25,000+ deductibles, comprehensive walls-in and loss assessment coverage help you avoid large out-of-pocket surprises. Loss assessment coverage is especially critical, covering your share of the master deductible after major claims. Colorado law also now requires explicit sewer backup endorsements due to frequent flooding and legal changes.

Make a habit of reviewing your HOA’s master policy annually and keeping your insurance broker informed about any remodels or custom upgrades. This ensures your walls-in policy isn’t just a box checked, but a tailored protection strategy aligned to real Colorado and Utah risks.

Making the Right Decision for Colorado and Utah Residents

Question 1: What does my HOA’s master policy actually cover?

Start by requesting and reading your HOA’s insurance declaration page. Don't assume! Coverage can range from “bare walls” (only covering the structure) to “single entity” (including initial fixtures). Ask your HOA which version they have and clarify upgrades vs. original items.

• If your association has only “bare walls” coverage, you’ll need greater building property coverage under your HO6 policy—even for cabinets and flooring.
• If your HOA has high deductibles (over $10,000), ensure your policy offers sufficient loss assessment protection.

Question 2: What are the most common risks for my building and location?

Weather and water damage top the list in Colorado and Utah. Use local insurance statistics to guide your coverage:

• Hail accounts for about 28% of structural claims along the Colorado Front Range.
• 33% of all condo claims in Northern Colorado are water-related—pipes burst, appliances fail, or neighbor mishaps trigger damage in your unit.
• Utah’s increasing wildfire zones and Fort Collins floodplain rulings mean endorsements like water backup and wildfire mitigation credits are smart add-ons.

Question 3: Will my coverage truly protect me if the worst happens?

Imagine a major water loss, fire, or hailstorm causing $20,000+ in damage. Would your current walls-in and loss assessment limits cover all repairs, or could you be facing a $15,000 special assessment from your HOA? Review your policy annually, update coverage after improvements, and ask your FoCoIns advisor to simulate a claim scenario based on your real building for peace of mind.