You just bought your first home, a Condo, and you couldn’t be happier! The question you may ask now is “Do I need a condominium insurance policy if my condominium association has a master policy for the complex?” This is a valid question and since you are now most likely watching every penny to afford your new home, one that is smart to ask.
All condominium buildings have associations that govern the policies of the condominium complex. This group manages the allocation of money and the collection of fees that each owner pays for building maintenance, insurance and community maintenance. Condo buildings have unique insurance needs because each unit owner owns a portion of the building. Every condo building needs a master policy to cover the general liability, common area property, and other potential areas of risk.
The Condominium documents specify what the Master Policy will cover and what the unit owner is responsible for insuring. It is important to have your agent review your condo documents to determine exactly what you need for insurance.
Condominium documents are usually written as “bare walls” or “all in”.
Under “Bare Walls” the unit owner is responsible for everything from the studs in. This would include the interior walls, wall coverings, cabinets, light fixtures, bathroom fixtures including tubs, sinks and toilets, as well as appliances, carpeting and personal property.
Under “All In” the Master policy would typically cover the unit as originally built including walls, cabinets, fixtures etc. They may also include betterments made by the unit owner. The unit owner is responsible for appliances and personal property.
If, after reading this, you are wondering if the Master Policy is enough for you, the answer is actually no. This is because the master policy does not cover an individual’s possessions or personal liability. In order to cover your possessions and personal liability, you must get a policy that is strictly related to you and your own unit and the items in it which belong to you. For more information on Condo insurance, call your independent insurance agent today or come into any of the FBinsure locations to talk with one of our professional team members.