HOA Community Insurance vs Individual Owners' Coverage

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So our HOA general liability policy covers the exterior and interior of our townhomes, excluding personal property. This policy is written to insure our homes at 100% value. Outside of this, each homeowner carries insurance on their individual unit for 100% of its value as well. Few questions:

  1. Is this an overlap in coverage? 
  2. If it is an overlap, should the owner's only take out personal property policies?
  3. Should the cost of the dirt/land, be included in the replacement value? This is a 58 unit development, so let's say even at $20,000K per lot, that's adding $1.16M in additional insurance coverage value, which I'm sure is contributing to our annual premium cost.

Thanks.

I believe that what you will be looking for is an HO-6 policy.  It should take in to account the master policy and provide the coverage you need at a reduced cost (compared to a standard homeowners policy).