Question:
We’re a 2 unit HOA in an up-down duplex in Minneapolis. Our master policy was ended as the provider “left the industry”. We are unable to find a new master policy insurance as every other broker and insurance company also say they have left the industry. Does state law require a master policy? Could each unit just have an HO3 policy instead?
– Haley
Answer:
Hi Haley,
Minnesota law generally requires condominium and planned community HOAs to carry a master insurance policy under the Minnesota Common Interest Ownership Act (MCIOA), found in Minnesota Statutes Chapter 515B. This requirement applies to common interest communities created after June 1, 1994, unless exempted. For communities created before that date, the declaration may or may not incorporate MCIOA provisions.
Specifically, Section 515B.3-113 mandates that HOAs maintain property insurance covering common elements and the units themselves in the case of a condominium. If your duplex is organized legally as a condominium, you’re likely required to maintain a master policy covering both units, unless your declaration explicitly says otherwise.
However, if your HOA is not structured as a condominium — but as a planned community with detached ownership and minimal shared elements — then the law may permit more flexibility. Still, even in planned communities, liability insurance is typically required.
It’s highly recommended that you speak with an attorney familiar with Minnesota HOA law. They can confirm whether your HOA falls under MCIOA, what the governing documents require, and whether shifting to HO-3 policies is legally and financially sound.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
