Many condo owners do not purchase individual condo insurance because they assume that they are insured under the HOA – Homeowners Association’s commercial condo policy – This is not true.
HOA Master Policy
The HOA should have a master policy that covers the common areas of the complex; typically, the policy would cover the structure, common areas, and swimming pool, but this does not protect individual units.
The policy is paid for by the owner’s monthly HOA fees; some policies are extensive, and some carry minimal coverage. It is important to understand what you are paying for and determine what coverage you need for your unit as well as to avoid overlapping coverage.
Request a copy of the condominium’s master policy and have your insurance broker review it so they can determine your personal insurance needs. Your insurance broker will determine what coverage you need to protect your investment; a few factors to consider include:
- Determine if the HOA dictates which insurance company to use and which policy to buy.
- Whether or not the master policy covers any part of your unit.
- How to protect your condo from water damage, fire, and natural disaster.
- Whether or not the master policy covers damage that occurs during improvements or repairs in or outside the unit.
- Coverage for personal belongings from damage or theft.
- The damage you may cause to other units – overflowing dishwasher or washing machine.
- Protection against liability lawsuits in the event a guest or worker is injured inside your unit. It is expected that the HOA carries liability in case someone is injured on the property, but that policy may not include your unit.
Purchasing a condominium is a significant investment – Take a few minutes to ensure you are fully protected. We will review the HOA policy and provide a quote for your individual condo insurance policy.