Condo Insurance 101

You might think that home and condo insurance are similar, but there are many differences. Most condos don’t have backyards or basements. You own everything within your condo, and ownership of the rest of the complex is usually shared between all condo owners. To make things even more confusing, insurance rules are different between different condominium complexes. Take a few minutes to learn more about condominium master policies so that you can understand how they work, and what kind of insurance you will need to purchase.

What is a Master Policy?

The master policy is an insurance policy that the group of condo owners (also known as a condo association) pays for. It covers everything that falls under shared ownership, such as a pool, common areas, exterior structures and more. Depending on what type of master policy your condo association has, it may also cover certain items within your condo as well. There are two basic types of condo master policies: bare walls-in and all-in. You will need to purchase different insurance for your condo based on what kind of master policy your association has.

Bare Walls-In Condo Insurance

If your condo association has this type of policy, that means that everything outside your walls, including the exterior framework of your condo, should be covered on the master policy. You will need to purchase insurance for everything within the walls of your condo. That includes carpets, appliances, fixtures and your personal belongings.

All-In Condo Insurance

All-in master policies work a little bit differently than bare walls-in policies. If your condo association has an all-in policy, then things like flooring materials, bathroom fixtures, kitchen counters, cabinetry and other fixtures inside your condo should be covered by the master policy. You will need to check the condo association’s master policy for specific details, but in general, you may only need to insure your furniture and other possessions.

Before you talk to your independent agent, make sure you have a copy of your condo association’s master policy. This document should outline everything that is covered by the master policy so that you know what kind of condo insurance you will need to purchase.