Your property’s insurance needs are determined more by its legal structure than by how the property is managed on a day‐to‐day basis. Even though you operate much like a duplex and share expenses directly between two owners, your building is legally organized as a condominium with a nonprofit homeowners’ association (HOA) established in your Declaration. This means that—even in a small, two‐unit community—the common elements (such as the roof, exterior walls, foundation, and any shared spaces) are owned collectively, and liability related to those areas must be addressed under a master policy. Here are some key points to consider:

Because your property is legally a condominium, the governing documents (often referred to as the Declaration of Covenants, Conditions, and Restrictions or CC&Rs) generally require that the association maintain a master insurance policy covering the building’s common elements and liability exposures. Courts in Colorado have consistently held that the insurance obligations flow from the legal structure—even for very small communities. In other words, if your governing documents require a particular type of coverage, deviating from that can leave you exposed to gaps in coverage and potential noncompliance with the association’s rules.

Insurance agents typically recommend a commercial or master policy for condominiums because such policies are designed to address common element elements shared by the units, joint liability, and lender requirements. While at first glance it might seem more economical or simpler to treat the property as a duplex with two separate policies, this approach presents several risks including coverage gaps, conflicts between policies, and noncompliance with declarations or lender terms.