A condo association bridges the gap between homeowners’ associations and unit owners. They maintain communal spaces and shared grounds while giving property owners management rights over their own dwellings. The balance is delicate, and it often creates uncertainty when liabilities arise. To assume your responsibilities, learn what condo master insurance covers.
Condo Master Policies: What’s Covered?
It’s the association’s responsibility to learn about condo master insurance and create detailed policies without coverage gaps. When condo associations have airtight insurance coverage, unit owners will know who is liable for damages and when they must use their own policies. While all master policies are unique, common coverage areas include those listed in the sections below.
Common Areas
Condo master policies cover areas and buildings used by more than one unit owner, including pools, parks, event spaces, fitness centers, and elevators. Most policies also cover walkways, parking lots and garages, and landscaping. Condo owners, however, may be held partially responsible for significant damage to shared areas. A loss assessment policy can protect a condo owner from gaps in their association’s coverage.
Condo Unit Structures
Condominium owners are allowed to decorate and renovate the insides of their units, and it can be tough to tell where the association’s coverage ends and the owner’s policy begins. These problems are made even worse by the fact that condo associations can have different kinds of insurance, including:
- Bare walls-in coverage. These policies cover a condo’s structure, which includes framing, drywall, plumbing, roofing, and wiring.
- All-in coverage. An all-in condo policy covers everything mentioned in the section above and all fixtures, installations, and appliances that come with units.
If you’re considering purchasing a condo, it’s crucial to review the association’s master insurance policy to see how much additional coverage you may need.
Condo Master Insurance Provides Multiple Layers of Protection
A condo master policy combines liability and property protections. While property coverage typically protects common areas from damage due to vandalism, wind, fire, and other perils, liability coverage protects associations by paying settlements and legal fees associated with claims filed by owners.
To understand the liability and property protections master insurance policies provide, condo board members must carefully review each policy’s limits, exclusions, terms, and conditions. A local insurance agent can offer valuable information and make unbiased recommendations.
Do Condo Master Policies Have Deductibles?
These insurance policies have deductibles, which can be high. If a claim is filed, unit owners may be required to pay the deductible depending on the association’s bylaws and who caused the damage.
Who Pays Condo Master Insurance Policy Premiums?
Because condo master policies typically protect areas for which boards are responsible, associations pay the premiums. Unit owners then pay these costs as monthly surcharges or special assessments.
Do Condo Owners Need Separate Policies?
Although additional insurance is not required unless a condo is mortgaged or financed, it is a wise purchase. An individual policy covers everything a master policy does not, including personal property and liability for damages and injuries. By purchasing an additional insurance policy, condo owners can protect themselves from high out-of-pocket costs.
Get More Information on Condo Insurance
If you are a condo owner or association member and would like to learn how master insurance policies work, help is available. Call a local insurance agent who can explain existing, new, and individual policies and recommend the best type of coverage for any situation.
