There are several different subsets of homeowner’s insurance. For condominium owners, CONDO insurance falls under one of these subsets. Quite simply, this particular insurance provides coverage for liability protection and personal property. It is important, however, to understand the details of this insurance, particularly in relation to the amount of coverage that is necessary based on the condo association’s master policy and the coverage it provides.
Bare Walls Coverage
If the master policy states the association is responsible for elevators or stairs, roofing, flooring, and walls the coverage is known as bare walls. Condo owners are responsible for everything inside their unit including counter tops, personal property, carpets, interior partition walls, and more. The insurance policy the owner would need should cover everything the association’s master policy will not cover.
Single Entity Coverage
Under this master policy, the association covers the building but it also covers a certain amount of the interior as well. The master policy will describe all fixtures within the interior it will cover, but the condo owner is responsible for insuring upgrades and alterations, in addition to the owner’s personal property. The amount of coverage the owner would need depends on what is not covered by the master policy.
After you have determined what is not covered by the association’s master policy, you can talk with your insurance agent to figure out exactly how much extra coverage you should have. Keep in mind that although some things may be covered by the master policy, it is often capped at a specific amount so if you upgrade you will need to have your CONDO insurance cover the difference. Many people forget about their personal belongings, so make sure that you account for these things as well. Also, you should review your insurance policy every year to make sure that you still have an adequate amount of coverage. If, for example, you make changes or have new belongings you will need to add these to the policy.
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