{"id":15,"date":"2026-06-09T16:45:55","date_gmt":"2026-06-09T22:45:55","guid":{"rendered":"https:\/\/www.weeryouragent.com\/blog\/?p=15"},"modified":"2026-06-11T10:22:05","modified_gmt":"2026-06-11T16:22:05","slug":"5-costly-condo-insurance-mistakes-illinois-boards-make-at-renewal","status":"publish","type":"post","link":"https:\/\/www.weeryouragent.com\/blog\/5-costly-condo-insurance-mistakes-illinois-boards-make-at-renewal\/","title":{"rendered":"5 Costly Condo Insurance Mistakes Illinois Boards Make at Renewal"},"content":{"rendered":"\n

Did your condo association’s insurance premium jump at your last renewal? You are not alone. Across Chicago and the suburbs, carriers keep raising rates. Storms and hail drive more claims every year. On top of that, water damage from burst pipes and sewer backups is still the most common loss in our older buildings.<\/p>\n\n\n\n

When those costs hit, boards often cover the gap with a special assessment. And then unit owners start asking a fair question: who was supposed to pay for this?<\/p>\n\n\n\n

The answer usually comes down to one phrase in your master policy. Is it “all-in” or “bare walls”? Most board members have never been told which one their association carries. So let’s break down the difference, why it matters right now, and what your board should check before the next renewal.<\/p>\n\n\n\n

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What your master policy actually covers<\/h2>\n\n\n\n

Every condo association carries a master policy. It insures the building and the common elements. Under the Illinois Condominium Property Act<\/a>, your association must insure those elements and the units for full replacement cost, and it must carry liability coverage too (765 ILCS 605\/12).<\/p>\n\n\n\n

But the Act does not say where the master policy stops and each owner’s policy begins. Instead, your declaration and the master policy form draw that line. And that is exactly where “all-in” versus “bare walls” comes in.<\/p>\n\n\n\n

All-in coverage<\/h3>\n\n\n\n

An all-in policy goes the furthest. It covers the building, the common elements, and the original fixtures inside each unit. Think cabinets, flooring, and the layout as the unit was first built.<\/p>\n\n\n\n

So after a covered loss, the association’s policy rebuilds most of the unit itself. Owners usually pay only for their personal belongings and any upgrades they added.<\/p>\n\n\n\n

Bare walls coverage<\/h3>\n\n\n\n

A bare walls policy covers less. It protects the building structure and common elements, but it stops at the unfinished interior. In other words, it reaches the studs, subfloor, and ceiling, and no further.<\/p>\n\n\n\n

Everything inside that shell becomes the owner’s job to insure. That means drywall, flooring, cabinets, appliances, and fixtures, all through their own HO-6 policy<\/a>. As a result, the same kitchen fire can produce two very different bills, depending on which structure your association uses.<\/p>\n\n\n\n

Why this leads to special assessments<\/h2>\n\n\n\n

Here is the part that catches boards off guard. Sometimes a loss costs more than the master policy covers. Other times it falls into a gap between the master policy and owners’ individual coverage. Either way, the shortfall does not vanish.<\/p>\n\n\n\n

The association absorbs it. And under 765 ILCS 605\/18, the board can then levy a special assessment to make up the difference. The gap tends to open up in a few common ways:<\/p>\n\n\n\n