 Condominium Owners Coverage
Condominium Unit Owners Coverage
Insuring a condo is a little different than insuring a typical home because you don't own the entire building. Typically, there are two policies involved.
The
master policy provided by the association and your individual unit owner policy. You must refer to the bylaws of your condo association. If you know
what is covered by the master policy and purchase individual coverage for the rest; then you should have the protection you need.
Your Personal
Unit Owner Policy
This policy covers your personal property and other property such as improvements, additions, private balconies, private entryways,
private garages and other property that may be your responsibility under the condo association documents. However, your policy only covers physical damage
to property if it is caused by a
named peril identified in the policy. Review the perils covered by your policy. You have the option to purchase coverage to protect
you for additional perils and/or to remove some of those nasty
exclusions that exist in all policies.
One key element of your unit owner policy is loss assessment coverage. This coverage entitles you to collect up to $1,000 for loss assessments charged
to you by the condo association. Loss assessments typically result from losses suffered by the condominium as a whole, such as damage to a roof or law
suit. These damages are then passed through to all unit owner. Obviously, $1,000 is not nearly enough coverage. You should definitely purchase higher
limits.
Note: It is not intended to pay an assessment if the condo association decides to repave the parking lot or other type improvements.
Master Policy vs. Personal Unit Owner Policy
When a loss is covered by both the condominium's master policy and your individual unit owner
policy, your policy will pay only for the balance of the loss that remains after the master policy pays up to its limit, subject to appropriate deductibles..
Please note that many master policies carry deductibles as high as $5,000 or $10,000. It is imperative that your individual unit owner policy be tailored
accordingly or you may suffer an unpaid loss.
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