Many condo owners (unit owners) wrongly assume that their condominium unit is well protected through condominium association’s insurance policy. The fact is that condominium association’s policy coverage are only limited to certain specific areas for the general property and does not include property that is inside. It is therefore extremely important that you completely understand every aspect of the policy and check your association’s policy.

Coverage with condo unit owner:

Condominium insurance for unit owners ensures compensations against damages to the structures and alterations/fixtures you own like cabinets, flooring, etc., caused by a set of defined perils in the policy. These defined dangers vary from policy to policy but generally includes fire, water (not from flood water), wind, theft etc. The policy also covers you for the loss and/or damage of your personal belongings that are inside your condo unit. Additionally, Condo insurance also provides coverage against liability insurance in situations like, visitor gets hurt or injured on your unit premises and decided to file lawsuit against you.

In summary standard condo insurance for condo owner will normally have coverage for:

• Fixtures and additions in your unit like cabinets, flooring, etc.
• Personal stuff
• Liability

Coverage with condominium association’s insurance policy:
Condo association insurance policy covers the physical damage to the buildings, other structures within the condo complex. For the individual units, the association’s policy only covers the unfinished interior of your unit.