I just recently sold a townhouse - an interior unit. The owner had checked on a Homeowner's Association Addendum which is attached and part of the Contract between the Seller and the Buyer that there was a "master insurance policy" on the property. When I called the Property Management company to get a copy of the insurance certificate for the townhouse, I was told that the only coverage included in the monthly dues was liability for the common area! After checking back with the seller's agent, he called his seller only to discover that the seller had been under the assumption all along that his dues covered fire insurance for his townhouse! And he had owned it for nearly 15 years - without insurance as it turns out!
Call your Association to obtain a copy of your Certificate of Insurance to verify what kind of coverage is included in YOUR dues! Then make sure you get the right coverage - full insurance or one that dovetails with the type of insurance your Association does have! I can't imagine the horror of finding out that your property is uninsured after a tragedy like a fire!