A condo master policy is the insurance coverage policy held by the condo corporation. Unlike a personal condo insurance policy, the condo master policy is designed to cover general liability for the condo association and property damage to common areas.
A condo master policy is paid using the condo fees collected from residents of the building. If a common area is damaged by a covered incident, the damages can be covered by the condo master policy. A condo master policy can also provide coverage in the event that someone injures themselves in a common area of the building or if the condo corporation were to be sued.