Insurance can be a tricky business, and navigating the ins and outs of a condominium master insurance policy is no exception. But don’t worry — this doesn’t have to be overwhelming!
With some research and understanding, anyone can learn about both the benefits and complexities of their condo’s insurance coverage. Whether you’ve just bought your first property or are looking for more information on an existing policy, we’ll help you make sense of it all in no time.
Let’s dive into everything that goes into a condo master insurance policy, so you’ll feel confident when dealing with any potential issues.
Condo master insurance policies are essential for any homeowner of a condominium. A condo master policy is a type of insurance that covers the common areas of the building and provides liability protection to all unit owners.
In order to understand how it works, it’s important to understand what kind of coverage it provides and who pays the deductible. Let’s break down the basics of condo master insurance policies.
What Does a Condo Master Insurance Policy Cover?
When it comes to insuring your condo, you should have two policies: a master insurance policy administered by the homeowners/condominium association (HOA/COA) and an individual condo insurance policy.
The condo master policy covers the building’s common areas, structural components like wiring and pipes, and extends liability to common areas owned by the association. It most likely does not cover your personal possessions within the unit, such as furniture and clothing, or living expenses if you need to vacate for a period during repairs.
Conversely, individual condo insurance will help protect items within your condo, as well as offer liability insurance if someone is injured in your home. Your financial institution may also require that you maintain such coverage in order to keep your mortgage current.
What is a Condo Master Hazard Insurance Policy?
Master condo policies provide coverage for structural damage and liability exposure. This type of coverage can protect against natural disasters like earthquakes, floods (normally a separate policy), hurricanes, fires, vandalism, and more. Since these types of events can cause extensive damage and lead to costly repairs — which could be beyond what most individual homeowners can afford — it’s essential to make sure your condo master policy includes this kind of protection.
Who is an Individual Condo Insurance Policy For?
Individual condo insurance policies are for condominium owners who insure their own unit, but not the entire property. These policies protect your unit itself and your belongings inside, such as furniture, appliances, electronics, and more. They also cover liability risks — situations in which they may hold you financially responsible if someone else gets injured or has their property damaged while inside your unit. Many people often refer to a condo policy as a “walls in” policy. Essentially, a condo unit owner is responsible for their own cabinets, sinks, toilets, flooring, paint, ceiling fans and all other items within the walls of the condo.
When filing an insurance claim under a condo master policy, there may be an associated deductible that must be paid before they received any funds from the insurer. This deductible will be split among all unit owners according to their individual ownership percentage in the building (e.g., if one person owns 50% of a four-unit building, they’d pay half of any applicable deductible).
Sometimes, though, depending on local laws or bylaws governing condominiums, the association may pay all or part of this cost.
What are the Shared & Common Areas of a Condo Master Insurance Policy?
An association master insurance policy is important for unit owners to understand, as it provides coverage for buildings and areas owned jointly by all the members. Scenarios such as damage to parks or pools run by the association, repairs needed to an elevator or gym, and other shared spaces potentially used for events are normally covered when an insurance policy is in place.
How Do You Know If You Have Enough Coverage For Your Condo?
Ensuring that your condo is adequately protected means assessing the unique risks faced in condo insurance. Accurately assessing your needs will ensure adequate coverage for damage caused to both the inside and outside of your unit, as well as protect you from liability risks. Consider these areas before choosing condo insurance coverage:
Condo master insurance policies are essential for anyone living in a condominium because they provide coverage for structural damage and liability exposure that would otherwise have to be paid out-of-pocket by individual unit owners. Understanding what they cover under this type of policy — including who pays the deductible — as well as making sure you have proper hazard coverage included can help ensure that you’re adequately protected against unexpected expenses related to owning a condominium home.
With so many factors at play with your condo’s coverage needs, it’s essential to work with an experienced insurance provider who can help you determine which type of policy is best for you and your particular situation.
If you need help finding the best condo insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get a condo insurance quote online now.