If you own a stacked condo in Tennessee, the association’s master policy and your HO-6 are not two copies of the same coverage. Under Tenn. Code § 66-27-413, when the declaration describes units with horizontal boundaries, the master property insurance shall include the units, but need not include improvements and betterments installed by unit owners. That single sentence is why custom flooring, upgraded cabinets, and other owner-installed finishes often live on the HO-6 — not on the master.
| Topic | What § 66-27-413 says |
|---|---|
| Improvements and betterments | Master policy that covers horizontal-boundary units need not include owner-installed improvements and betterments |
| Owner’s own policy | Association coverage does not prevent a unit owner from buying insurance for the owner’s own benefit |
| Which policy is primary | If both policies cover the same risk at the time of loss, the association’s policy is primary |
| Proof of master coverage | Certificate or memorandum available to any unit owner on written request |
Source: Tennessee Code § 66-27-413.
What “improvements and betterments” usually means in practice
Builder-grade carpet swapped for hardwood, a kitchen remodel, built-in shelving, or other finishes you paid to install after purchase are the upgrades most owners mean when they say betterments. The statute does not inventory every upgrade. It says the master policy need not include them. Your declaration, the master policy forms, and your HO-6 wording decide where a specific item sits after a loss.
Your HO-6 is allowed — and expected
The statute says an association policy does not prevent a unit owner from obtaining insurance for the owner’s own benefit. In practice, that is the HO-6 lane: personal property, personal liability, loss of use, and the parts of the unit — including many upgrades — that the master policy leaves to you, subject to each policy’s terms. More on where the HO-6 starts and the master stops: Pigeon Forge Condo Insurance: Where Your HO-6 Policy Starts and the Master Policy Stops.
If both policies respond, the master is primary
If, at the time of a loss, other insurance in the unit owner’s name covers the same risk the association policy covers, the association’s policy provides primary insurance. That does not mean your HO-6 is optional. It means coordination of benefits matters when both forms can respond to the same risk. Ask your agent how your HO-6 treats improvements, betterments, and loss assessment after a master-policy deductible. Deductible background: Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises.
Ask for the certificate before you set limits
Insurers that issue association policies under this section must issue certificates or memoranda of insurance to the association and, upon written request, to any unit owner, mortgagee, or beneficiary under a deed of trust. Ask your association or management company for the current certificate and the master deductible before you set HO-6 building-property or improvements limits.
Related checks for Tennessee condo owners
- Association fidelity bond rules: Starting Jan. 1, 2027, Tennessee HOAs that collect assessments must carry a fidelity bond.
- A pricing model change affecting condo policies: A Condo Insurance Credit Model Is Changing in Tennessee on Oct. 23.
- Flood is separate from both policies in most cases: Sevier County’s Nov. 13 flood maps are final — condo owners still need the master policy and an HO-6.
Your declaration and bylaws can add requirements, so read them alongside the statute. This article is informational; your policy forms control.
Related reading from All Seasons
- Pigeon Forge Condo Insurance: Where Your HO-6 Policy Starts and the Master Policy Stops
- Starting Jan. 1, 2027, Tennessee HOAs that collect assessments must carry a fidelity bond.
- A Condo Insurance Credit Model Is Changing in Tennessee on Oct. 23
- Sevier County’s Nov. 13 flood maps are final — condo owners still need the master policy and an HO-6.
- Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Does the condo master policy have to cover my upgrades?
For units with horizontal boundaries, Tenn. Code § 66-27-413 says the master policy shall include the units but need not include improvements and betterments installed by unit owners.
What are improvements and betterments?
In practice, they are owner-installed upgrades such as flooring, cabinetry, or finishes beyond the original build. The statute does not list every item; your declaration and policy forms control.
Can I buy my own condo insurance if the association has a master policy?
Yes. The statute says an association policy does not prevent a unit owner from obtaining insurance for the owner's own benefit.
Which policy pays first if both cover the same risk?
The statute says if a unit owner has other insurance covering the same risk at the time of a loss, the association's policy provides primary insurance.
How do I see what the master policy covers?
Ask for the certificate or memorandum of insurance. The statute requires insurers to provide one to any unit owner upon written request.
Should my HO-6 include loss assessment coverage?
Many HO-6 policies offer it, but limits and conditions vary. Read your declarations page and ask how your policy responds after a master-policy deductible.
Does this article promise my upgrades are covered?
No. It is informational only. Coverage depends on your declaration, the master policy, and your HO-6 forms.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
