page loader

Condo Insurance

Condo insurance is customized specifically for condominium owners. Condo insurance is important because your condo association will only cover certain liabilities for you. It’s also different from renters insurance, in which the person renting is typically only liable for their personal belongings. If you own a condominium, it’s important that you learn about what coverage is relevant to you as a condo owner, and what coverage you are personally responsible for purchasing.

There are two main types of master policies that are generally purchased by the condo association. The first type is an all-inclusive sort of policy, which will cover floors, appliances, plumbing, and wiring, but not the condo owner’s personal property. The other type of policy is much less inclusive and will cover nothing or almost nothing inside the condo. The condo association will normally insure the property, the physical structure, and the common areas of the condo complex, but depending on which type of master policy your condo association includes, you as the condo owner may have a lot of things for which you will need to obtain coverage.

Unfortunately, the condo association’s coverage doesn’t usually extend to the condo interior, meaning the condo owner is responsible for any liabilities that are incurred physically inside the condo. Although there are exceptions, most condo agreements will state that the condo owner, not the association, is liable for these costs. The condo owner is often responsible for possible liabilities and losses such as personal property, interior property damage, interior walls, bodily injury, and even disasters. This can include fire, water damage, theft, vandalism, fixtures and appliances, and other damages that may happen within a condo.

It’s vital to determine which liabilities should be covered. For instance, if you live in an area with flooding or hurricanes, you’ll want to look into the proper coverage for these potential disasters. If you own valuable jewelry or personal property, you may want to assess its value and then fully insure it.

As a condo owner, it’s up to you to know what liabilities and property you are responsible for insuring. The association’s master policy doesn’t cover that which occurs within the unit, leaving you exposed to many risks. In the event of a claim or a lawsuit, it could be a financial life-saver to have proper protection in place.