Condo Insurance

What is Condo Insurance

Typically, your condominium association’s insurance cover the condominium structure, commonly owned assets, as well as liability insurance for the association. Unfortunately there are many cases where the association’s policy won’t cover you or your things. Condominium insurance provides coverage for items on the inside of your condominium, such as appliances, fixtures, personal property, and valuables. In addition, it also protects you against liability claims in the event you are responsible for another person’s injury or property damage.

How Does It Work

While state law and the articles of the condominium association will determine exactly what is covered under the association’s policy, in most cases the association’s coverage stops after the exterior walls. This means, as a condo owner, you are responsible for the interior walls, and possibly fixtures, in addition to your personal property. Most policies cover:

•Fire Damage
•Smoke Damage
•Water Damage
•Lightning Damage
•Windstorm / Hail Damage

6 Types of Condo Insurance

As insurance regulations varies from complex to complex, as well as state to state, it is important for condominium owners to ask the right questions to ensure proper level of insurance coverage. The association’s rules and master policy should clearly state which parts of the complex are insured through the association dues.
•Property Coverage
•Personal Property
•Loss of Use
•Loss Assessment
•Personal Liability Coverage
•Medical Coverage

Definitions of Coverage Types

The Property Coverage policy insures your property, such as building additions and installations that are part of your units. Upgrades and fixtures not covered under the Master Policy are covered.

The Personal Property policy insures personal property in your home. Examples of personal property are furniture, clothing, electronics, jewelry, ect.

The Loss of Use policy provides coverage if there is a loss on the property, and you are unable to live in your unit, you will need somewhere else to live temporary. This coverage will cover expenses which would be necessary.

The Loss Assessment coverage insures the owners in the event that they are assessed for certain losses, such as to help cover the Master Policy Deductible.

Personal Liability Coverage protects the unit owner in the event that someone makes a claim against them for bodily injury or property damage.

A Medical Coverage policy will help to pay for medical expenses for guests of the unit, in the event they are accidentally injured.

Why it is Important

What is not covered under the Master Policy, the condo owner is financially responsible for. By obtaining a solid insurance policy, you will get coverage for the unexpected costs that are classified as the owner’s responsibility.