A condo master insurance policy is different than an individual condo policy held by a unit owner. When people purchase a condo, they recognize the need to obtain individual personal liability and personal property coverage. However, that is just one piece of the puzzle because the condominium association must also provide insurance coverage, referred to as condo master insurance. Understanding what condo master insurance covers is crucial to choosing the right policy.
What is Condo Master Insurance?
Individual condo insurance works much like homeowners coverage, and may also include loss of use coverage. However, additional coverage is required because the condo complex is overseen by the condominium or homeowners association that is responsible for condo master insurance, also referred to as a master condo policy. The premium for condo master insurance comes out of the association dues or maintenance fees paid by the individual condo owners. For this reason, it is important for individual condo owners to understand what level of coverage is being provided by the master policy.
What Does a Master Condo Policy Cover?
A master condo policy does not cover the same things as an individual policy, which is why it is crucial to have both policies at all times. Condo master insurance covers two areas of risk. The first is a general liability policy for the association itself. The second is property damage coverage for the common areas shared by all the condo owners and residents. Areas referred to as common ones typically include the elevators, stairways, roof, exterior walls, grounds, common hallways, and recreation centers. All of these areas must be insured in the event of an accident or injury that requires coverage.
Are All Master Condo Policies the Same?
While there are typical areas of coverage, not all master condo policies are the same. Coverage may be limited to certain structures, or include additional areas, such as common floors, counters, and cabinets within individual units. Plus, the levels of coverage also differ. Condo owners should carefully review the master condo policy to ensure they have adequate coverage in all living areas. Before purchasing a unit, condo owners need to understand the insurance required for peace of mind. Meet with the association to find out more about the current master policy and what it covers.
How Do You Find the Right Master Condo Insurance Policy?
Shopping for insurance is challenging, especially when it involves a large property with multiple units and common areas. Plus, it can become daunting to try to understand levels of coverage and applicable insurance regulations in the area. To find the best possible coverage, work with an experienced insurance agent who understands commercial policies. With that in mind, have all documentation pertaining to the condo association and property readily available to the agent. In addition, be aware of risk areas, such as a common swimming pool with a deck. Talk to the agent about securing the right level of coverage to take care of any accidents or injuries that could arise.
When it comes to condo ownership, two policies are critical to providing adequate coverage in all situations. The first is the condo master insurance policy to cover all the common areas at the property. The second is the individual policies held by each condo owner. Work with an educated insurance agent to get the most comprehensive coverage possible.