Glossary of HOA Insurance Terms

Aggregate Limit

Generally refers to liability insurance. It is the total amount of insurance coverage the insured has under the insurance policy, during the contract period, regardless of the number of claims.

All-Risks Coverage

Insurance that covers all losses except for those specifically excluded in the policy.

Bare Walls Coverage

Property damage insurance that does not cover improvements to the unit such as fixtures, appliances, interior partitions, wall coverings, floor coverings, and cabinets. This type of insurance policy is the least expensive because it is limited to restoring the bare walls, floors, and ceilings of individual units.

Blanket Deductible

A deductible that applies to all buildings or locations covered by a policy.

Boiler and Machinery Coverage

Covers losses resulting from the malfunction of boilers and certain equipment and machinery. This type of coverage is generally excluded from property insurance creating the need for this separate insurance product. It will often cover the breakdown of elevators and HVAC systems.


An insurance agent that researches the marketplace for the benefit of insureds, not insurance companies.

Broker of Record Letter

A written statement signed by an insured advising an insurance company that a specific broker or agent is acting as the insured’s exclusive representative.

Building Code and Ordinance Coverage

An additional line of protection that pays for items that must be added as part of the rebuilding process to bring the property up to the current building codes.