As a condominium owner, there is comfort in knowing building maintenance, roof repairs, landscaping, and insurance will be taken care of. An insurance policy provided by your homeowners association will most likely cover the exterior building structure and common areas, but what about potential structural damage to your unit and coverage for your personal belongings? Without a personal insurance policy, you could be left paying for damages out-of-pocket if your unit floods, is damaged in a fire, or is burglarized. That’s why you need condominium insurance.
You will need two separate policies to protect your condominium investment:
1. Your own condominium insurance policy
This provides coverage for your personal possessions, structural improvements to your condo, and additional living expenses if you are the victim of fire, theft, or other disaster listed in your policy. This policy also includes liability protection.
2. A “master policy” provided by the homeowners association
This covers liability risk and physical damages for the common areas you share with others in your building including the roof, basement, elevator, and walkways.
If you have questions about what coverage is in place, talk to your homeowners association, insurance professional, or family attorney.