What is condo insurance?
Condos are usually insured by the unit owner and the condo association. It is very important to know what the association's master policy covers in order to make sure you as the owner are properly covered without gaps.
The master policy usually covers the structure as well as common areas. This includes areas like the hallways, utility rooms, the roof and shared areas such as the gym or swimming pool. Some condo association policies cover the structure to its original construction form including walls, flooring and fixtures. Other condo association policies just cover the units "bare walls"and you could be responsible for the rest.
Condo policies protect the policyholder in three ways.
Building limit - this limit protects things like walls, flooring and other attached fixtures from unexpected loss cause by fire, water damage, wind damage, vandalism and more.
Personal Property limit - this limit protects things that you own in your condo that are not attached, such as your clothes, furniture, electronics and appliances from unexpected loss cause by fire, water damage, wind damage, theft vandalism and more.
Personal Liability limit - this limit pays for lawyer fees and settlements that could result from you accidentally causing bodily injury or property damage to another person.
Things to keep in mind when shopping
Contact your homeowners association and request a copy of your latest master policy and have your agent review it.
Ask your agent about loss assessment coverage. This covers losses that could be assigned to you by the condo association in the event of a loss that exceeds the master policy limits.
Talk to your agent about any recent updated that your made to your condo
Talk with your agent about the proper liability limit for your. Your liability limit should ideally be more than your assets.