Determining if a Master Property Insurance Policy is Required

The requirements for individual property insurance policies will vary based on the homeowners' association (HOA) legal documents and the master property insurance policy. The following table provides the requirements based on the project type.

Project Type	Requirement
PUD	Individual property insurance policies as described in Property Insurance Requirements for One-to Four-Unit Properties are required for each property securing a loan that Homium closes and funds in a PUD project unless the project's legal documents provide for a master property insurance policy that covers both the common elements and residential structures. In that case, Homium will accept the master property insurance policy in satisfaction of its insurance requirements for the subject property. The borrower may still have to maintain an individual unit owner policy as described in Coverage Requirements in this topic. When units located within a PUD are covered by a master property insurance policy maintained by the HOA, the underwriter must verify that the insurance provides coverage for both the common elements and residential structures. When units located within a PUD are covered by individual property insurance policies maintained by their respective owner(s), the underwriter is not required to verify master property insurance coverage on PUD common elements.
Condo	Master property insurance policies are required for the common elements and residential structures for each loan that Homium closes and funds in a condo project unless the condo project's legal documents require individual property insurance policies for each unit. In that case, the individual property insurance policy must meet the requirements in Property Insurance Requirements for One-to Four-Unit Properties. When a master property insurance policy is required, the underwriter must verify that the master property insurance provides coverage for both the common elements and residential structures. The borrower may still have to maintain an individual unit owner policy as described in Coverage Requirements in this topic.

To the extent the master property insurance policy does not cover the interior of the unit or improvements to the unit, the borrower must maintain an individual unit owner property insurance policy (see Individual Property Insurance Requirements for a Unit in a Project Development for additional requirements).