Some condo associations carry master policies that offer robust protection for individual units, which lets condo owners purchase condo policies that offer only a basic level of structural protection for their unit. Rather than getting duplicate coverage for their unit, they can rely partially on the protection afforded by their condo association’s master policy.
Other condo associations have master policies that provide minimal protection for individual units. In some cases, master policies may insure little more than the walls of individual units -- features like cabinets, flooring, and ceiling fans may not be covered. When master policies offer little protection for individual units, condo owners usually need a condo policy that offers lots of structural coverage.
How Do the Personal Property Coverages Offered by Condominium Policies Vary?
The personal property coverages offered by condominium policies can vary in at least three significant ways.
First, policies frequently have different personal property limits and deductible, which both drastically influence the amount of personal property coverage that a policy offers. Limits generally determine the maximum that a policy will pay if belongings are damaged or destroyed in a covered claim, and deductibles determine how much a condo owner must pay out of pocket before their policy will begin paying for a valid claim.
Second, policies often have set limits for high-value belongings, such as jewelry, furs, and collectibles. The exact limits that policies have for high-value belongings can vary, and they can be especially important to condo owners who have affected high-value items.
Finally, condominium policies usually provide either replacement value or actual cash value coverage for personal belongings. Replacement value coverage normally offers enough coverage to replace insured belongings, while actual cash value typically only insures belongings up to their depreciated value. In most cases, belongings’ depreciated value is less -- and sometimes much less -- than their replacement cost.
Does Condominium Insurance Cover Condo Complexes’ Common Areas?
Condominium insurance generally doesn’t cover the common areas of condo complexes. The responsibility of insuring areas like entryways and hallways usually falls to condo associations, which generally are able to purchase coverage for common areas through condo association insurance policies.
Who Should Have Condominium Insurance?
Most, if not all, condo owners should have condominium insurance. Few owners could afford to rebuild their condo and replace everything in it if there was an incident. With condominium insurance, condo owners don’t have to worry as much about potential incidents.
How Can Condominium Owners Get Quotes for Condo Insurance?
The easiest way to get quotes for condo insurance policies is to contact an independent insurance agent. Independent agents are able to review a condo association’s master policy to determine what structural coverages a condominium owner needs. Then, they can request quotes for policies that provide those structural coverages, along with the personal property and liability coverages that a condo owner wants.