Condo living offers convenience and shared responsibilities, but understanding your condo association’s insurance coverage is crucial for protecting your investment. Condo association insurance, also known as a master policy, covers common areas and shared structures, but knowing its limitations helps unit owners avoid unexpected expenses.

What Does Condo Association Insurance Cover?

A typical condo association policy includes coverage for:

• Common Areas: Lobbies, hallways, stairwells, elevators, and shared amenities like pools or fitness centers.

• Building Structure: Depending on the policy type, coverage may extend to exterior walls, roofs, and sometimes even unit interiors.

• Liability Protection: Covers injuries that occur in common areas and protects the association against lawsuits.

• Loss Assessment Coverage: When damages exceed policy limits, unit owners may be required to contribute. Some HO-6 policies help cover these costs.

What’s Not Covered?

Condo association insurance typically does not cover:

• Personal belongings within a unit

• Individual unit improvements or upgrades

• Personal liability within a unit

• Additional living expenses if a unit becomes uninhabitable

Why You Need Individual Condo Insurance

Unit owners should have their own HO-6 insurance to cover personal property, interior unit upgrades, and personal liability. Reviewing the condo association’s policy ensures you’re not underinsured or paying for unnecessary coverage.

Final Thoughts

Understanding condo association insurance coverage helps unit owners avoid financial surprises. Always review your master policy and work with an insurance expert to ensure you have adequate protection. With the right balance of association and individual coverage, you can enjoy condo living worry-free!

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