New Hampshire Condo Insurance Requirements and RSA 356-B:43

New Hampshire law requires condominium associations to carry master casualty and liability insurance under RSA 356-B:43. Casualty policies must cover full replacement value of community structures. At The HOA Guide, we review state condominium statutes to help board members and unit owners understand association coverage rules.

What RSA 356-B:43 Requires the Association to Carry

State law places insurance obligations squarely on the condominium instruments that govern each community. Under RSA 356-B:43, paragraph I of the New Hampshire Condominium Act, the condominium instruments must require the unit owners’ association, its board of directors, or a managing agent acting on its behalf to secure specific insurance policies. The requirement covers small condominiums too.

The statute lists mandatory and optional policies within items (a) through (c):

• Casualty coverage under paragraph I(a): The association must obtain a master casualty policy providing fire and extended coverage. The insured amount must equal the full replacement value of the structures in the condominium, or of structures that make up part of the common areas.
• Liability coverage under paragraph I(b): The association must carry a master liability policy in the amount specified in the condominium instruments. This policy must cover the association, the board of directors (if any), the managing agent (if any), all staff and agents, and all unit owners and occupants entitled to use any portion of the condominium.
• Additional policies under paragraph I(c): The condominium instruments may require additional insurance. The statute names specific examples, including workers’ compensation insurance, liability insurance on association-owned motor vehicles, and specialized policies covering lands or improvements where the association holds or shares ownership or other rights.

Boards need to review their community declarations carefully. To understand how master policies operate in practice, see our detailed guide on the HOA master policy and our review of what HOA insurance covers. For neighboring regional rules, compare our review of Massachusetts condo insurance.

How Repair Costs Are Handled With and Without Master Coverage

When an association fails to maintain the casualty policy required by statute, New Hampshire law imposes a statutory cost-sharing rule directly on unit owners. Under RSA 356-B:43, I(a), if the association does not carry a casualty policy covering common areas, each unit owner shares the cost to repair common areas equally. This statutory sharing applies up to the amount of damage that a fire and extended coverage policy would have covered.

The cost allocation shifts when damage affects limited common areas rather than general common elements. If property damage affects only one or a few limited common areas, only the unit owners assigned to those specific limited common areas share the repair cost.

Insurance Status	Common Area Damage Responsibility	Limited Common Area Damage Responsibility
Master casualty policy active	Master policy proceeds pay to repair, replace, or restore structures	Master policy proceeds pay to repair, replace, or restore structures
No master casualty policy active	Each unit owner equally shares the repair cost up to covered damage limits	Only unit owners of affected limited areas share the repair cost

Where Insurance Proceeds Must Go Following Property Damage

Under RSA 356-B:43, III, proceeds from a master casualty policy must be applied directly to repair, replace, or restore the damaged structure or common area.

The statute provides only one exception to mandatory reconstruction. Repair and restoration are required unless unit owners vote to terminate the condominium regime under RSA 356-B:34. Unless owners complete that formal statutory termination vote, master casualty claim payments must fund physical restoration.

What Unit Owners Still Need to Insure Themselves

The statute sets no minimum dollar amounts for master liability policies, leaving coverage numbers to the condominium instruments. The statute text also does not address insurance premiums, master policy deductibles, or owner-purchased insurance policies.

Individual owners must read their condominium declaration and bylaws to identify where association responsibility stops. You can explore how unit-level coverage functions in our guide to HO-6 insurance.

Read our guide on loss assessment coverage to see how those policies respond to unexpected association assessments.

Notice Duties When Policies Are Obtained or Altered

RSA 356-B:43, II requires prompt communication with all unit owners whenever association policies change.

When the association obtains any insurance policy, or later changes or terminates an existing policy, the officer who sends meeting notices must promptly notify each unit owner in writing. That notice must follow the delivery requirements set in RSA 356-B:37-a.

Who This Guidance Does Not Fit

This guidance applies strictly to condominiums governed by the New Hampshire Condominium Act. It does not apply to other planned communities.

What Would Change This Guidance

Two developments would alter the requirements described in this guide. First, legislative amendments to RSA 356-B:43 would change statutory obligations. The section was enacted in 1977 and amended in 2016 and 2020. Second, the condominium instruments may require additional policies and set the liability amount, since the statute leaves both to them.

Legal and Insurance Guidance Notice

This is educational information, not insurance or legal advice. A board should confirm its coverage against RSA 356-B:43 and its own declaration and bylaws with a licensed New Hampshire insurance broker experienced in condo master policies, and consult a New Hampshire community-association attorney. To evaluate commercial insurance providers that underwrite common-interest communities, consult our guide to the best HOA insurance companies or explore our main HOA insurance hub.