Whether you are looking to buy a condo or if you already own one, it’s important to understand the differences between an individual policy for your condo unit vs a master policy for all units in the complex.

Because of common ownership, condominium insurance requires multiple policies. Basically, if you are a condo owner, while you do own your individual condo unit solely, it is important to realize that you are also a co-owner of the common areas in the condominium project.    

Here are the essential differences between a condo unit owner's policy and a master condo policy:

What does an Individual Condo Insurance Policy cover?

Your individual condo insurance plan (unit owner's insurance policy) is the policy you are required to get as the owner of a condominium unit. This policy covers your personal property and provides liability protection in the event of an accident that occurs within your condominium unit. Your condo association or mortgage lender may also require that you have an individual condo insurance policy in place. The coverages for a condo unit include:.

• Personal liability coverage -- This covers you in the case that someone else makes a claim against you for bodily injury, property damage or physical injuries.

• Personal Property Insurance -- This coverage can help you replace or repair your personal property, such as furniture, electronics or other valuables, in the event that they are stolen, damaged, or lost in a covered event.

This type of policy often includes Loss-of-Use Coverage. Loss-of-Use protects you if your condo becomes uninhabitable because of a fire, or another covered loss. This additional living expenses coverage can be used to cover additional expenses beyond your monthly expenses, such as rent for another apartment or hotel bills, meals and laundry, and any other costs incurred because of the displacement.

Condominium owners are unique because they own a shared portion of the building or property but not the entire building. To ensure that your shared ownership part of the property is covered, you will need to be added to the Master Condo Policy.

What does a Master Condo Insurance Policy cover?

The Master Condo Policy, Condo Association Insurance, is an insurance policy that is owned by all homeowners the condominium association. The premium is paid out of the homeowners association dues and/or maintenance fees. The Master Condo Policy covers general liability for the association, and property damage coverage for the common areas. Common areas include the roof, exterior walls, stairways and recreation rooms, as well as common hallways and grounds.  

You can have coverage that covers only the building structure and common areas, or all structures within your unit, including counters and floors. It is therefore important to determine the exact coverage that your condo association's master policy offers. 

Get new Condo Insurance coverage or have us review your current policy

If you are about to buy a condominium, connect with a Pearson Wallace insurance agent. Your agent will provide valuable assistance by carefully reviewing the provisions and coverages present in your condominium project’s Master Policy. This will allow your agent to create a customized individual condo unit policy that fills in any blanks not addressed in the Master Policy, while also providing you with comprehensive liability coverage for your condo unit and personal property coverage for the belongings within.  

Based in the Berkshires here in Western Massachusetts, Pearson Wallace Insurance has the expertise you’ll need to carefully evaluate your condominium insurance options, to make sure all aspects of your condo ownership are covered. Connect with a Pearson Wallace condo insurance specialist for a complimentary policy quote now.