Georgia Condo Insurance: Master Policy Rules Under 44-3-107

Georgia law requires a condominium association to insure all buildings and common structures at full replacement cost, less deductibles. That coverage extends directly into individual units. At The HOA Guide, we review state condominium statutes to help boards and owners understand where association obligations end and personal policies begin.

What Georgia Law Requires the Association to Insure

The Georgia Condominium Act establishes explicit property insurance requirements for residential communities. Under O.C.G.A. 44-3-107(a)(1), an association must obtain a property policy or policies affording fire and extended coverage insurance in an amount consonant with the full insurable replacement cost, less deductibles, of all buildings and structures within the condominium.

This statutory mandate applies regardless of designated unit boundaries. The master policy must cover:

• All portions of each building that are common elements, including limited common elements
• All foundations, roofs, and roof structures
• Exterior walls, including windows, doors, and their framing
• All convertible space within the condominium building

A board cannot alter these foundational property coverage boundaries through informal policy. For communities exploring regional comparisons across state lines, our review of South Carolina condo insurance details how neighboring jurisdictions allocate master policy responsibilities.

What the Master Policy Must Cover Inside Your Unit

Georgia statute requires the association’s master policy to insure key interior elements of each individual unit. Under O.C.G.A. 44-3-107(a)(1), the master property policy must cover these items regardless of who is responsible for maintaining them under the condominium instruments:

• The heating, ventilation, and air conditioning (HVAC) system serving the unit
• The sheetrock and plaster board comprising the unit’s walls and ceilings
• Floors and subfloors of the type and quality initially installed, or like-kind replacements
• Wall, ceiling, and floor coverings of the type and quality initially installed, or like-kind replacements
• Plumbing and electrical lines and fixtures of the type and quality initially installed, or like-kind replacements
• Built-in cabinetry and fixtures of the type and quality initially installed, or like-kind replacements
• Appliances used for refrigeration, cooking, dishwashing, and laundry of the type and quality initially installed, or like-kind replacements

This standard creates a meaningful division between original installations and owner upgrades. The statute mandates coverage for initial building specifications or equivalent replacements. If an owner installs custom cabinetry or upgraded flooring beyond the original standard, the association policy does not have to cover that extra value. Unit owners must address improvements and personal property through an individual policy, as explained in our guide to HO-6 insurance. For more foundational details on commercial property structures, see what does HOA insurance cover and our analysis of HOA insurance vs. homeowners insurance.

Liability Insurance and Additional Coverage

Georgia law mandates commercial general liability protection alongside property coverage. Under O.C.G.A. 44-3-107(a)(2), the association must obtain commercial general liability insurance for bodily injury and property damage. The statutory limits must be not less than $1 million per single occurrence and $2 million in the aggregate.

This liability policy must cover:

• The association itself
• The board of directors and officers
• Association agents and employees
• Unit owners and other persons entitled to occupy a unit

Coverage applies to occurrences arising out of the use, ownership, or maintenance of the common elements or other portions the association must maintain. Subsection (a)(3) also requires any other types and amounts of coverage specified in the condominium instruments. Under subsection (b), the board may authorize additional insurance coverage beyond statutory baselines. Boards seeking broader institutional coverage options can consult our guide to the best HOA insurance companies.

Water-Damage Claims: The Five-Business-Day Disclosure Rule

O.C.G.A. 44-3-107(c) establishes specific disclosure deadlines when water peril arises. Added by House Bill 1070 in 2020, this subsection outlines disclosure duties whenever there is a potential or submitted claim related to water damage or water peril on a policy obtained by the association or by a unit owner.

Either party may request in writing a copy of the certificate of insurance that may apply. The receiving party must provide that certificate within five business days. Once a water-damage claim has been submitted, the requesting party may also use a written request to obtain the name, address, and telephone number of the insurance adjuster, if an adjuster has been identified.

The statute includes a clear limitation. Subsection (c) explicitly states that it does not require an association to obtain insurance related to water damage or water perils.

The Georgia FAIR Plan and Who Regulates Insurance

Properties unable to secure commercial property coverage in the voluntary market may turn to residual market mechanisms. The Georgia Underwriting Association (GUA) writes Georgia’s FAIR Plan policies. State insurance oversight rests with the Office of the Commissioner of Insurance and Safety Fire (OCI).

The commissioner’s office issues regulatory instructions directly to insurers operating statewide. For example, OCI issued Directive 25-EX-7 on December 1, 2025, directing insurers on GUA’s filing of FAIR Plan premium tax. Associations seeking professional guidance on compliance and vendor administration can evaluate local firms through our directory of HOA management companies in Georgia.

Who This Guidance Does Not Fit

This guidance does not fit planned-unit developments, townhome communities, or single-family subdivisions organized outside the Georgia Condominium Act. A homeowners association operating under the Georgia Property Owners’ Association Act or general corporate statutes is governed by different statutory sections and its own recorded covenants. Owners and board members in non-condominium communities should review our general HOA insurance and reserves resources rather than applying condominium master policy rules.

What Would Change This Guidance

Statutory changes or local document amendments would alter these requirements. If the Georgia General Assembly amends O.C.G.A. 44-3-107, master policy baselines, disclosure windows, or liability minimums would adjust accordingly. Additionally, an individual condominium’s recorded instruments can mandate higher liability limits or broader property coverage than the statute requires. A board must review its own recorded condominium instruments to confirm whether local standards exceed state minimums.

This is educational information, not insurance or legal advice. A board should confirm its coverage against O.C.G.A. 44-3-107 and its own condominium instruments with a licensed Georgia insurance broker experienced in condo/HOA master policies, and consult a Georgia community-association attorney for its specific situation.