Condo or Condon’t — Condo Insurance

Condo Insurance

You’re taking the plunge and opting into condo life.  Once the papers are signed, it seems like everything is taken care of for you. Building maintenance, roof repairs, landscaping and insurance are all covered by someone else, right?

Not quite. You won’t be on the line for the building maintenance but the insurance works differently than you might expect.  The insurance policy provided by the condo association covers the building structure and common areas. Would it cover potential structural damage to your unit and your belongings?  Most likely the answer is no. Without a personal condo insurance policy, you could be left high and dry if your unit is damaged in a fire or other potential hazard.

Most condos need two insurance policies.

Master Policy  

A “master policy” is generally provided by your condo association. This policy covers the physical structure of the building, including basement, roof, walls, elevators, lobbies, etc.  Coverage usually includes both physical damage and liability. We recommend you get a copy of the policy so you know what’s covered by the association.

Personal Condo Policy  

This will cover additional structural damage to your unit, including cabinets, appliances, personal belongings, and more.  This also covers living expenses if you fall victim to a fire, theft, or other covered disaster.  Many insurance carriers offer enhancements that include personal property protection in your condo insurance policy.

If someone were to trip and fall inside or near your condo, they could sue both you and the condo association.  A condo insurance policy provides liability protection and can protect against lawsuits that target both your current and future earnings.