Condo Insurance in Arizona — What Your HOA Policy Doesn’t Cover
If you own a condo in Arizona, the HOA master policy does not automatically cover the inside of your unit. Arizona statute ARS 33-1253 sets what the association must carry. Master deductibles of $10,000 or more are common, and some Phoenix and Scottsdale communities sit at $25,000. That deductible often lands on the unit owner. Below we cover what the master policy misses, what your HO-6 must cover, and the three checks to run before monsoon season.
Arizona’s Condo Insurance Law — ARS 33-1253
Arizona’s Condominium Act includes ARS 33-1253, which sets out the insurance requirements for condo associations. The association must maintain property insurance on the common elements — and to the extent available, the units as well — at no less than 80% of actual cash value. The statute also requires liability coverage determined by the board.
A 2023 amendment to this statute clarified unit owners’ rights around claims. Before reporting a loss under the master policy, a unit owner must notify the association and give the board 10 business days to decide whether to file a claim. If the board decides not to file, they must provide a written explanation. This matters because some associations resist filing claims to protect their loss history — even when the unit owner has a legitimate covered loss.
Arizona’s Deductible Problem
HOA master policy deductibles of $10,000 or more are common across Arizona. In some Phoenix and Scottsdale communities, deductibles have climbed to $25,000 or higher as the insurance market has hardened. When a covered loss occurs, the unit owner is often responsible for paying the master policy deductible — or their share of it — before their own HO-6 kicks in.
Many Arizona condo owners don’t learn about this until after a claim. The association isn’t always proactive about disclosing deductible amounts. Under ARS 33-1253, you can request a certificate of insurance from your HOA. Do it. Know the deductible before you need to.
Your HO-6 Policy in Arizona
Your HO-6 has a Coverage A limit for the interior of your unit. In Arizona, that includes everything the master policy doesn’t cover — typically your drywall, flooring, cabinets, countertops, fixtures, and any upgrades you’ve made. If your CC&Rs define the master policy as bare walls, you’re responsible for all of it.
Most Arizona condo owners pay between $500 and $900 per year for HO-6 coverage. But the premium only matters if the limits are right. Review your Coverage A against what it would actually cost to rebuild your interior today. Check your personal property amount — there’s no automatic formula, so it’s whatever your agent entered. And make sure you have a replacement cost endorsement on personal property.
Monsoon Season and Water Damage
Arizona’s monsoon season — June 15 through September 30 — brings flash flooding, wind-driven rain, and sudden water intrusion. Condo units on lower floors or near parking structures are particularly vulnerable. A sudden water event is typically covered, but long-term moisture issues from poor drainage or deferred maintenance may not be. Sewer backup requires a separate endorsement on your HO-6.
Loss Assessment Coverage
When the association’s master policy deductible hits, unit owners split the cost through a special assessment. Loss assessment coverage on your HO-6 helps cover your share. Default limits are usually $1,000 to $2,000 — not enough for an Arizona community with a $25,000 deductible. Increase this coverage. Not all assessments are treated identically under every policy, so ask your agent how yours handles deductible-related assessments versus general special assessments.
What to Do
Request a certificate of insurance from your HOA under ARS 33-1253. Find out the master policy type and the deductible. Review your HO-6 Coverage A limit and personal property amount. Check your loss assessment coverage. And read your CC&Rs — in Arizona, those documents define the split between association and owner responsibility.
We Can Help
If you want help reviewing your condo policy, get a quote or give us a call. We serve condo owners across the Phoenix metro, Tucson, and throughout Arizona. Learn more about our Arizona insurance services.
