If you live in a condominium complex, you likely have access to several shared amenities such as parking, sidewalks, sitting areas, maybe even a pool. It’s an appealing set up for anyone who values these things but doesn’t want to put in the work to maintain them. Of course, like any public property, these areas still need to be insured. The condo association that handles their maintenance will also have its own insurance policy.
But how does a condo association insurance policy work? And what does it cover? We’ll cover all that, plus how condo association insurance differs from an HOA master insurance policy.
The money you pay to your condo association helps pay for all the amenities members of your community share. It also pays for the insurance policy that covers those amenities. This is your condo association insurance policy, also sometimes referred to as a master condo policy, HOA master insurance policy, or otherwise simply as HOA condo insurance. This policy covers damages to areas that are shared in your building or complex such as lobbies, elevators, amenities like swimming pools or tennis courts, and even the exterior of the building itself. It also protects the condo association against liability costs if someone is injured on the premises. 1
Condominium association insurance is not the same thing as general condo insurance, which individual members of a condominium complex can purchase for themselves. Individual condo insurance is similar to homeowner’s insurance in that it protects the interior of the home and belongings within it and pays liability costs if a guest is injured. Think about it like this: the condo association insurance policy covers everything outside of the walls of your unit, and your individual condo insurance policy pays for everything inside them. It is important to note that the scope of the condo association insurance policy begins directly behind that wall. Studs, drywall, and insulation are all included. 1
Your condo association’s insurance policy covers all the public areas and shared amenities within your building or complex. This includes parking lots, lobbies, elevators, tennis courts, and any other spaces or features your community shares. Some condo association insurance policies go a step or two further, however. A “bare walls” policy stops at your drywall, studs, and insulation, but policies with “single-entity” or “all-in” coverage may cover your cabinets, flooring, and even any built-in appliances. 1
If someone slips, falls, is injured in your building’s lobby, and decides to sue, who’s liable for the ensuing legal expenses? Your condo association’s master policy likely includes liability protection for just such an incident.
Since individual residents are only responsible for the insides of their units, it falls to the condo association to protect the rest of the building, including the exterior. If a storm or other natural disaster damages the roof or siding, the condo association’s insurance policy will likely cover the cost of repairs.
Common areas such as lobbies, elevators, hallways, and land outside the building are all typically protected by a condo association’s insurance policy. Shared amenities such as swimming pools and tennis courts are also likely included in that coverage. 2
No matter how extensive your condo association’s insurance policy is, it will never cover everything. Residents should always have their own individual condo insurance policies. Your policy will protect your personal belongings as well as anything your condo association’s policy may not cover such as furniture and appliances. It also provides you liability coverage in the event someone is injured inside your unit and loss assessment coverage for paying damages that exceed your condo association’s policy. 2 Condo insurance is also crucial if you’re interested in renting out your condo.
Get a free condo insurance quote today and learn how condo insurance can protect you and the things you care about most.
