If you own a condo in Tennessee, two policies usually sit on top of each other: the association's master policy and your own unit-owner policy, often called an HO-6. Tennessee Code § 66-27-413, part of the Tennessee Condominium Act of 2008, sets the floor for what the association must carry. Knowing that floor tells you where your own policy has to pick up.
| What § 66-27-413 says | Why a unit owner should care |
|---|---|
| Association property insurance on the common elements against risks of direct physical loss commonly insured against for similar properties, to the extent reasonably available | The master policy is built around shared parts of the building |
| After deductibles, no less than 80% of total replacement cost at purchase and at each renewal | 80% is a minimum, not a promise of full rebuild cost |
| Liability insurance, including medical payments, in an amount set by the board, no less than the declaration requires | Your own personal liability is a separate question |
| Units with horizontal boundaries are included, but owner-installed improvements and betterments need not be | Upgraded floors, cabinets, and fixtures may fall to you |
| Repair or replacement cost beyond insurance proceeds and reserves is a common expense | A shortfall can come back to owners |
Source: Tennessee Code § 66-27-413.
The 80% floor, read carefully
The statute says the total amount of the association's property insurance, after deductibles, shall be no less than 80% of the total replacement cost of the insured property at the time it is purchased and at each renewal date. Land, excavations, foundations, and items normally excluded from property policies are left out of that calculation. The floor is a minimum. It does not say every loss will be paid in full, and the "to the extent reasonably available" language matters when the insurance market tightens. If the required coverage is not reasonably available, the association must notify unit owners.
Improvements and betterments are where many owners get surprised
For buildings where the declaration describes units with horizontal boundaries — think stacked units in a mid-rise — the master policy shall include the units but need not include improvements and betterments installed by unit owners. If you replaced builder-grade carpet with hardwood or added custom cabinets, ask whether your HO-6 includes enough building-property or improvements coverage for those upgrades.
A shortfall becomes a common expense
When repair or replacement costs more than the insurance proceeds and reserves, the statute makes the excess a common expense. In practice, that is how a large master-policy deductible or an underinsured loss can turn into a special assessment. Many HO-6 policies offer loss assessment coverage, but limits and conditions vary. Read your declarations page and ask your agent how your policy responds. More on deductibles: Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises.
Your own policy 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. It also says that if another policy in the unit owner's name covers the same risk at the time of a loss, the association's policy is primary. Your HO-6 typically addresses your personal property, personal liability, loss of use, and the parts of the unit the master policy leaves to you, subject to its own terms.
Ask for the certificate
Insurers that issue association policies under this section must provide certificates or memoranda of insurance to the association and, upon written request, to any unit owner or mortgagee. Ask your association or management company for the current certificate and the master policy deductible before you set your HO-6 limits.
Related checks for Tennessee condo owners
- Where the HO-6 starts and the master policy stops: Pigeon Forge Condo Insurance: Where Your HO-6 Policy Starts and the Master Policy Stops.
- 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.
What insurance does Tennessee law require a condo association to carry?
Tenn. Code § 66-27-413 requires, to the extent reasonably available, property insurance on the common elements and liability insurance, including medical payments, in an amount set by the board but no less than the declaration requires.
Does the master policy have to cover full replacement cost?
The statute sets a floor: after deductibles, no less than 80% of the total replacement cost of the insured property at purchase and at each renewal. It is a minimum, not a guarantee of full rebuild cost.
Does the master policy cover my upgrades?
For units with horizontal boundaries, the statute says the master policy shall include the units but need not include improvements and betterments installed by unit owners.
Who pays if repairs cost more than the insurance?
The statute says the cost of repair or replacement in excess of insurance proceeds and reserves is a common expense, which can lead to an assessment on owners.
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?
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.
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.
