Condo insurance offers a specialized form of homeowners insurance, geared toward covering condominium owners if they experience financial loss due to property damage. This policy typically covers areas of the property that are not insured by the condo association’s insurance. Condo owners need to purchase the appropriate level of coverage for their own peace of mind if the threat of losing their building, personal unit or personal items within the unit is of concern.
Condo Unit Policy vs. Condo Association's Master Policy
Although unit owner’s insurance will cover the policyholder’s personal unit, condo associations need a different type of coverage to insure other property areas. The association’s policy generally includes interior and exterior walls of the building, basement, elevators, roof, and floors. Communal features such as gazebos, picnic areas and walkways are covered most times as well. To choose the policy that best suits the condo owner, learn what areas are covered by the association and fill the gaps with individual policies.
What is covered?
Condo insurance policies would likely compensate condo owners for lightning damage, fire, hail, windstorm, frozen plumbing lines and theft. This also applies to theft of a guest’s property while staying at the condo. Basic policies normally do not cover earthquake or flood damage and property owners who reside in these areas where natural disasters may pose a threat should consider purchasing plans with those options. If unplanned damage occurs, the owner needs to not have intentionally caused damage. A policy might cover accidental injuries that happen to visitors while inside the condo.