Master policy and H06

We are a small HOA townhouse group in Minnesota with very limited financial resources. We have 2 buildings of 3 units each. Our master policy states that we have 'all in" total replacement coverage. Our insurance company has stopped doing HOA business, so we had to go with a much more expensive company and 'actual cash value' coverage in order to get insured.
My question is, will our H06 coverage pick up where the master policy comes up short because of the 'ACV' in the event of a claim? Some on our board believe that we need to amend our docs to
'Bare walls' coverage in order for the H06 to cover any of the interior of individual units. Any help is appreciated.

Minnesota law from the Uniform Condominium Act, assuming that applies to your townhouses:

515A.3-112 INSURANCE.
(a) ... the association shall maintain, to the extent reasonably available:

(1) Property insurance on the common elements and units, exclusive of land, excavations, foundations, and other items normally excluded from property policies, insuring against all risks of direct physical loss.

If you are a condo under this law, then you must continue to insure your units.

HO-6 is a package that includes "property damage" to a unit, which includes the inside of a unit. Unit owners are covered up to the limit on their policy and the unit owner may have coverage options that are greater than the association's coverage, such full replacement cost for the unit.

Unit owners already have this coverage for the interior in their HO-6. That is what it is designed for.

Since both the association and the HO-6 cover the same thing (the unit interior), the association's coverage is usually "primary," which means that the association's coverage pays first.

The association's insurance will never pay for everything, since there is a deductible and other limitations such as only covering 'actual cash value'. In general, the HO-6 pays for all or part of the deductible and whatever damage to the unit is not paid by the association (within the HO-6 policy limits).

So, yes, the HO-6 will pick up where the association's coverage leaves off and will pay for the interior.