What does Condo Insurance Cover?

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A typical condo insurance policy provides coverage for the following categories:

• Building property: the unit itself, including walls and fixtures, 

• Personal property: furniture, electronics, and other movable goods

• Personal liability: legal expenses from claims or lawsuits against you

• Loss of use: costs of lodging/transport if unit is uninhabitable

• Loss assessment: your portion of any losses shared out by the association

The main difference between a condo owner policy and regular homeowners’ insurance policies is that Condo policies only cover the interior structure of a unit from the "walls-in". Otherwise, a condo owner policy and regular homeowners’ policies are quite similar in how they cover personal property, liability, and additional living expenses.

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Usually, the dwelling and property coverage for a condo will cover a defined list of "named perils" such as: fire, hail, theft, and vandalism. Any hazards that are not named are not covered, which means you're financially responsible for those damages.

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The type of master insurance policy your HOA or condo association has will directly impact the amount of condo insurance you'd need to purchase. You should ask the association for a copy of its hazard insurance declaration page, which details the policy and what it covers.

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The cost of the master policy is shared by all unit owners, usually in the form of recurring Condo or HOA fees. There are three main types of condo master insurance policies:

• Bare walls coverage: a limited master insurance policy that covers the structure, as well as most fixtures and furnishings in common areas. It also covers any property that is collectively owned by the condo association.

• Single entity coverage: includes everything in bare walls coverage and also provides coverage for built-in property such as fixtures in individual condo units.

•  All-in coverage: applies to all property collectively owned by the condo association or which is part of the condominium structure. It's the most comprehensive condo master insurance policy, covering all condo improvements and additions.

 

Typically, all common areas in a condominium building are covered under a "master insurance policy" purchased by the condo association or homeowners’ association (HOA) unless stated otherwise by the bylaws. This includes not only the building's roof and exterior but also internal areas such as elevators and hallways.

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Loss assessment coverage
Loss assessment insurance, also called special assessment coverage, is an optional coverage that you can add to a condo insurance policy. It covers situations in which the unit owners in a condominium are financially responsible for a shared loss, so long as the issue was a covered peril.

 

* Disclaimer: This document represents only a brief description of terms and is not part of the policy. Only the Insurance policy terms and conditions apply.