Your condo is more than a roof over your head: It’s your home. So make sure you understand the insurance requirements and coverage options for your unit.

Master Policy And Unit Policy

Generally, a condo association insures the building and common elements under a single policy, called the master policy. This policy typically provides one of three kinds of coverage:

When a master policy is in place, you will need to purchase an individual policy to cover the items and changes in your unit not covered by the association master policy. You may also want to consider coverage for damage to your unit not compensated because of the master policy deductible. Keep in mind that unit owner insurance responsibilities can vary widely.

For example, some associations may have no master policy, which shifts the responsibility for insuring the structure to the unit owners. Review your building’s insurance documents and bylaws early in the purchasing process to make sure you comply with all requirements and purchase adequate coverage for your home. If you would like assistance in this process, please feel free to reach out to our office.

A typical condo unit policy also includes coverage for several other common items and situations:

Personal Property: In most cases, condo unit owners are responsible for ensuring their possessions against theft, damage, or loss. Personal property coverage insures your clothes, furniture, electronic equipment, and other household items for their replacement value or actual cash value (original price minus depreciation). Your property is usually covered in the unit, or you have it with you when you are away from home.

Loss Of Use: This coverage applies if you temporarily have to live elsewhere because your condo was made uninhabitable by a fire or other covered peril. The policy will reimburse you for the portion of hotel bills, meals, laundry, and other living expenses that exceed what you would pay if you lived in your home.

Personal Liability: Liability coverage protects you if others make a claim or bring suit against you for physical injuries for which you are responsible. It also protects if you or a family member causes damage to others’ property.
Lender Requirements

Most mortgage lenders require proof of condo unit insurance before they approve a purchase. So if you are in the process of acquiring a condo, we highly recommend getting your insurance lined up as well.

Price Factors
Your condo unit policy’s price, or premiums, depends on two factors: the amount of coverage and the deductible. Less coverage and a high deductible mean lower premiums. More coverage and a low deductible mean higher premiums. Working with an agent that understands your situation will help insure you have proper coverage and policy limits.