Condo Insurance
When you buy a condominium or a co-op, you will need two different insurance policies to protect your interests.
- Personal Insurance Policy – Your personal insurance policy covers exactly what the name implies: your personal belongings, the cost of loss or damages to any upgrades you make to the structure of your condo or co-op, and any extra living expenses you incur as a result of an event or natural disaster covered by your policy. This personal home insurance policy should also cover your liability for the bodily injury and damage to property that your guests may incur as a result of your actions or a covered loss.
- Master Insurance Policy – This insurance policy is the one that will be provided to you by the board of directors of your condominium complex or co-op. This will cover the cost of damages and replacement of common areas and shared aspects of the building including but not limited to elevators, hallways, lobbies, immediate outdoor areas, basement and storage areas, the roof, and the pool. These areas will be covered for liability as well.
These two policies do not necessarily cover your higher priced personal belongings, liability, or fees for upkeep on the shared parts of the building or complex. You may need to purchase extra insurance to make sure that low limits don't keep you from being completely covered in case of an emergency.
What Does Condo Insurance Cover?
The personal coverage you purchase for your condo should follow a thorough investigation of what the master policy covers. No reason to purchase more coverage than you actually need! Conversely, some very important things may not be covered and others may have limits that you feel are uncomfortably low. Make sure you read the details of your master policy and ask an insurance professional, lawyer, or the condo board of directors any questions you may have.
For example, your master policy may cover all damages and loss to the original structure and fixtures. That means that you will only need to purchase coverage for any upgrades or new fixtures that you install. In other cases, the master condo policy may only cover the bare bones of the structure like the floor, ceiling, and walls. In this case, you will need to get everything else covered, including:
- Cabinets
- Built-in appliances
- Pipes and plumbing
- Electrical wiring
- Fixtures
Some condo insurance extras you may consider include:
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Home Insurance Basics is not an insurer and cannot issue home insurance policies. This site provides free information about home insurance policies and companies. The companies detailed have not endorsed or sponsored these pages. Products and services may not be available in all states.
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