INSURANCE FOR CONDOMINIUM ASSOCIATION AND CONDOMINIUM OWNERS

Condominium Master Insurance Policy

A condominium master insurance policy is part of the agreement when buying a condo. As an owner of a unit in a complex you will become part of the homeowners association which was put into place to protect the rights of the unit owners. The condominium master insurance policy is a type of coverage that protects condo owners as a whole. It generally includes liability protection in the event someone is killed or seriously injured on the grounds as well as some structural coverage. Every master policy will vary, especially in regards to what structural elements are covered.

In almost all instances, the complex main structures, such as the tennis court, swimming pool, lobby, parking lot and picnic areas will be covered under the condominium master insurance policy. In some instances so will the structure of each individual unit such as damage to the roof, the walls, the electrical and water systems and the foundation to name a few. In other instances your condominium master insurance policy may also include cleanup and debris protection to your own private garden and yard while in other instances this is not included. As with any insurance policy, it is important to read and review the fine print on each master policy to ensure proper coverage. 

In addition to your condominium master insurance policy most condo owners will also look into their own protection which may include liability and contents protection as well as anything not included on the master policy. Liability protection will pay for medical related costs if someone is injured or killed in your individual condo rather than just on the complex in general. Contents protection will pay for replacement or actual value loss (depending on what policy you choose to insure under) of your belongings. This includes items damaged by natural disasters, fire, theft and other perils as listed on your plan. You can choose what you want included but most people will insure furniture, jewelry, tools, memorable items, collectables and electronics under their contents insurance.

Condo Insurance for Landlords and Renters

If you are using your condominium as an investment property, which is quite common these days, then you may have travelers or renters living in your space. If this is the case you might want to look for a condominium plan that offers landlord protection for damage caused by poor or negligent tenants as well as any loss of income if your renter doesn’t pay the bills on time. There are different coverage options for landlords depending on what you are using the property for, whether you are renting it out furnished or unfurnished, whether you have short term renters, long term tenants and several other options.

Condominium insurance is not just for condo owners. If you are a renter of a condo then you may want to choose renters insurance.  Renter coverage consists of loss of use coverage, contents protection and liability protection, all valuable options if you are ever faced with serious damage to your rental property. Liability protection has been explained above as has contents coverage. Loss of use coverage will offer compensation if the condo is damaged and unlivable. While the condo owner will need to make a claim through his condominium master insurance policy to pay for the damage, as a renter, you may be out on the street until the condo is fixed. Loss of use coverage pays for costs incurred in this event such as hotel fees and moving expenses.