Often times people think that the Condo association’s master policy is covering the building and they do not need to purchase any separate coverage for themselves.
In order to determine what you, as a unit owner, are responsible for in your condo you must obtain a copy of the bylaws, master deed, and trust for your condo. These documents outline exactly who pays for what in the event of a loss. The agent that is writing your individual unit owner’s policy needs to review this information to design your coverage to coordinate with the master policy.
Some master policies are “all in”
This means that the master policy will rebuild your unit after a loss (I.E. replace your cabinets, put in new flooring, bathroom fixtures, etc.) If damage occurs in your unit only you will be responsible for the master policy deductible. Many associations choose high deductibles and your agent should review this with you. The condo documents will also address coverage of the upgrades you make to your unit. (I.E. higher end cabinets, counter tops, or flooring.) You need to know before a loss if this is your responsibility.
If the master policy is not “all in” you will be paying to replace and rebuild these items. The master policy will never cover your personal belongings, however, your individual unit owner’s policy will take care of this.
The unit owner’s policy will also provide you with personal liability coverage.
Whatever you do, don’t assume your condo association has you covered. Let your insurance agent address these questions when your policy is being written.