Condominium Insurance

What is Condominium Insurance?

Condo insurance is a type of policy designed specifically for condominium owners. It provides financial protection for the unit’s interior, personal belongings, and liability, complementing the condo association’s master policy, which typically covers the building’s exterior and common areas.

What Condo Insurance Covers:

• Interior Unit Coverage – Protects fixtures, walls, floors, and any upgrades made to the unit (e.g., countertops, cabinets) from damage due to fire, water leaks, or other covered events.
• Personal Property Protection – Covers personal belongings like furniture, electronics, and clothing from theft, fire, or vandalism.
• Liability Coverage – Provides protection if someone is injured in your condo or if you accidentally cause damage to another unit.
• Loss of Use (ALE) – Pays for temporary living expenses if your condo becomes uninhabitable due to a covered event.
• Loss Assessment Coverage – Helps cover your share of costs if the condo association issues a special assessment for damages not fully covered by the master policy.

How Do Renters and Condo Insurance Differ?

While both condo insurance and renters insurance offer protection for personal property and liability, there are key differences in the type of coverage they provide due to the varying nature of condo ownership versus renting.

Key Differences:

• Property Coverage:
• Condo Insurance: Covers personal property, plus the interior structure of the unit, such as walls, floors, cabinets, and other improvements. It may also cover fixtures that are unique to the unit, depending on the policy.
• Renters Insurance: Covers only your personal belongings (furniture, electronics, clothing, etc.) but does not cover the structure of the rental property, as that is the landlord’s responsibility.
• Master Policy Coverage:
• Condo Insurance: The condo association’s master policy typically covers the building’s exterior and common areas, but condo insurance helps protect the interior of your unit.
• Renters Insurance: No master policy applies, as renters are tenants and don’t own any part of the building structure.
• Liability Protection:
• Both types of insurance provide liability coverage for accidents or injuries that occur in your space, but condo insurance may offer more specific coverage related to the building or common areas.
• Loss Assessment Coverage:
• Condo Insurance: Often includes coverage for assessments from the condo association, such as costs for damages to common areas that need to be paid by the owners.
• Renters Insurance: Does not offer this coverage, as renters aren’t responsible for building-wide damage or common area repairs.