Condo Insurance

A condo is a home of course, but it is not a house
and the types of insurance coverage you will need
are different.

The Condo Association collects dues to cover premiums
for insurance on common areas of the complex: the grounds,
parking lots, building exteriors, pool area, etc.
Typically, the individual owner is responsible for
insuring everything inside his unit.

The Condo Association's master policy generally are written
in one of two rather broad categories.

"All In"

Covers floors, walls, ceilings, fixtures, etc.
Pretty much everything that is structural or functional.
in nature.

"Bare Walls In"

Covers real property but will not include fixtures,
flooring, countertops, and other add-ons that a
owner may have completed.

As you can see, the coverage can vary considerably so
it pays to know upfront what your getting.


There are also variations of the two types.
These details should be included in a condominium
association's bylaws, so make sure you get your
copy and read it over.


Some questions to ask:


How much is the association deductible?

Condo association insurance usually includes
coverage for the commonly shared building
and common areas. Such policies
will have an association deductible.
It will be spelled out in the policy
In the event of a natural disaster or
just some storm damage, any deductible will be
divided among unit owners.

The trend lately has been to acquire policies
with higher deductibles to control costs.
This may leave a gap that the unit owner may
want to make arrangements for with additional coverage.
The bylaws should provide the information on
deductibles and individual owners responsibilities.

Typically a unit owner will cover the cash value of
interior aspects of the condo itself. That way, in the
event of a fire or water accident valuables as well as
any improvements he may have made are covered regardless
of the cause of damages; as a result of owner negligence or an act of God.