What is Condo Insurance?
Condominium owners have unique insurance needs, because they own the unit they live in but share common spaces with fellow condo owners. Condo insurance is designed to meet the unique insurance requirements of condominium owners in Massachusetts.
Condo insurance is similar to homeowners insurance, but it’s designed to meet the particular insurance needs of condominium owners.
Most condo policies insure what a condo owner actually owns, which generally is their unit and personal belongings. The walls of a condo and common areas usually aren’t covered in a condo policy, because they’re typically the responsibility of the condo association and insured by the association’s master policy.
Condo policies also usually provide liability coverage, which may help pay legal costs and settlements associated with an accident that the policyholder is responsible for.
What Parts of a Condo Does Condominium Insurance Cover?
A good condominium policy will cover what the condo association’s master policy doesn’t cover.
Some associations maintain “bare walls-in” masters policies, which typically only cover the walls of a condo (and sometimes its electrical and plumbing systems). These policies generally don’t cover anything inside a condominium’s walls.
Other associations have “all-in” or “single-unit” master policies, which provide more robust coverage. These policies usually cover the walls of a condo and the fixtures in it. The list of covered fixtures may include cabinets, countertops, appliances, wiring, plumbing, and carpet.
If an association has an all-in or single-unit master policy, condominium owners may only need a condo policy that covers their own belongings. When an association has a bare walls-in policy, owners should look for a condo policy that provides coverage for cabinets, appliances, wiring, plumbing, and flooring so they don’t have any gaps in their coverage.