Understanding Condo Association Insurance: Coverage & Owner Protection

Condo association insurance policies vary in terms of coverage. Coverage is determined by the articles of the condominium association and by state law. Most condo association insurance covers the condominium building structure and commonly owned property (e.g. pool). An owner must purchase additional condo insurance if they want to protect the interior of their condo and their personal property.

Master Package Policy

Condo association insurance offers a master package policy. With this policy, there are generally two possible coverage options.

• Bare Walls In – This policy insures the basic building structure (e.g. roof, exterior walls, etc.). The condo owner is responsible for finding additional insurance for items within the unit (e.g. countertops, floors, appliances, cabinets, etc.).
• All In – This policy covers the basic building structure, as well as interior elements like owner fixtures, installations, and additions.

Additional Owner Insurance

If you are lucky enough to find an “All In” master policy, you may not need additional condo insurance. Most condo owners, however, must find additional insurance to cover personal property, fixtures, and interior walls. Additional owner insurance should cover:

• any items and/or damage not covered by the master policy;
• any additional value or alterations you’ve made to the unit.
   

Before purchasing condo association insurance, be sure to speak with your insurance agent to discuss your policy in-full.