As a condo or townhome owner, your insurance needs are substantially different than the average homeowner. We can help determine what your association’s master insurance policy covers and fill in the gaps with a condo insurance policy. Most importantly, we’ll give you the piece of mind you deserve!
Most condo associations carry a master insurance policy that covers the building structures and common areas. The master policy will not cover your personal property, injuries that happen within your unit or lawsuits you may face. The policy could also exclude any building property within your unit such as flooring, cabinets, built in appliances, fixtures such as toilets, bathtubs/showers, etc.. Your association will typically carry one of the below three types of insurance policies
"BARE WALLS-IN"
This is the most common type of Master Policy. The condominium association only insures the structure and nothing inside. Therefore individual unit owners are responsible for insuring the building property they own and use exclusively such as sinks, built in cabinets, appliances, flooring, wallpaper (along with any improvements they have made to the unit). The unit owner is also responsible for the Dwelling, Personal Property and Personal Liability.
"SINGLE ENTITY"
This type of master policy covers all real property in a residential condo structure. It’s noteworthy that this coverage does not include any structural improvements or additions that the unit owner has made. The unit owner is also responsible for covering his or her own personal property, personal liability and the dwelling should include any improvements.
"ALL INCLUSIVE" OR "ALL-IN" COVERAGE
This master policy covers all real property in a condo structure such as fixtures, improvements, or additions that the owner has made. It provides coverage to replace a unit to the condition is was in at the time of the loss. Furthermore with this type of coverage, the owner is responsible for covering only his or her personal property and liability.
POLICY COVERAGE FOR UNIT OWNERS
Dwelling
Covers direct physical loss of building property inside your unit that you are legally responsible for. Some examples may be built in cabinets, built in appliances, flooring, wallpaper/paint, and fixtures such as sinks, toilets, showers/bath tubs, etc.
Loss of Use
If a covered insurance loss makes your unit inhabitable, this coverage comes forward to pay for you to stay elsewhere while your property is being repaired.
Medical Payments
Pays for injuries of a guest while hurt at the insured address.
Personal Property
Covers things like furniture, clothing, toiletries, TV's, electronics, movable appliances, dishes, home decor, etc.
Personal Liability
This coverage comes forward if you are legally held responsible for damages including bodily injury or property damage. See your policy for exclusions.
Loss Assessment
If your association asses you for a covered insurance loss, this coverage can come forward to help pay your portion of the assessment.