Condo associations straddle the line between landlords and homeowners’ associations. They’re responsible for maintaining the grounds and shared spaces while granting owners freedom over the interior of their condos. However, with this balance comes some confusion over the responsibility of each party when it comes to liability risks and damages. To determine what you’re responsible for, you must first determine what your condo’s master insurance policy covers.
What is Covered by My Condo’s Master Insurance Policy?
It’s the responsibility of the condo association to create a detailed master insurance policy so that they’re certain to address any gaps in the coverage. This allows unit owners to know who’s responsible for damages and when their condo insurance needs to come into play. While each master policy is different, areas often covered include the following.
Shared Buildings and Common Areas
A master insurance policy covers buildings or areas used by multiple unit owners. These include parks and pools belonging to the association, a shared gym or event space, and the building’s elevator. Also included in the policy’s coverage are parking lots or garages, walkways, and the general landscape. However, unit owners may be partially responsible for common areas, meaning if there is severe damage to a shared area, the association may hold the unit owners accountable for the deductible. Loss assessment coverage can protect you in the event your condo association’s policy is subpar.
The Structure of the Condo Units
Since condo owners have freedom over what they do with the inside of their unit, it can be confusing to determine where the master policy’s coverage ends and the unit owner’s insurance begins. What makes it harder to figure out is that there are different types of insurance policies associations can have. The two most common include:
- Bare Walls-In Policy: A bare walls-in policy limits its coverage to the structure of the condo, which includes the roofing, wiring, piping, framing, and drywall, but it does not cover interior aspects such as the fixtures, appliances, or installations.
- All-In Policy: An all-in policy includes coverage for everything outlined in the bare walls-in policy with the addition of installation, fixtures, and possibly built-in appliances that came with the unit.
It’s important to investigate the details of your condo’s master insurance policy to determine how much coverage you’ll require from your condo insurance.
Filling in the Gaps with Personal Condo Insurance
You can speak with your independent insurance agent to determine which areas left out of your condo’s master insurance policy you need to provide coverage for. By investing in a personal insurance policy, you’ll be able to cover all your personal belongings – which aren’t included in the association’s policy -along with any structural improvements you made if your building is covered by a bare walls-in policy. You will also be covered under a personal condo insurance policy in the case of events such as fire, theft or vandalism, and weather-related disasters.
When buying a condo or seeking appropriate coverage for your existing property, you must always determine what your condo’s master insurance policy covers. Alternatively, as a member of a condo association, it’s also important to detail everything your policy covers for the unit owners to ensure they know who’s liable for any future damages that may occur. At TJ Woods Insurance we have the resources and experience to help both condo owners and associations obtain the best condo insurance for their needs. If you would like to find out about how to protect your condo, contact us today.
