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Personal Insurance / Condo

Condo Insurance

A condo policy is defined by what your association's master policy does not cover, which means you cannot size it properly without reading the association's declaration. That is the part most people skip, and it is the part that decides whether your cabinets and flooring are your problem or the building's.

What It Covers

The parts of the policy, in plain terms.

  • Interior and improvements

    Cabinets, flooring, fixtures and finishes inside your walls. Whether these are yours or the association's depends on how the master policy is written: bare walls, single entity, or all-in.

  • Personal property

    Everything you own inside the unit. The master policy never covers this.

  • Personal liability

    Covers you if a guest is injured in your unit, or if something starting in your unit damages a neighbor's.

  • Loss assessment

    When a loss exceeds the association's coverage and the cost is split among owners, this is what pays your share. It is inexpensive and routinely set too low.

How it plays out

A supply line lets go in an upstairs unit and comes through your ceiling. The association's policy handles the building's structure. Your ruined flooring, your furniture, and the hotel while it dries out are yours, and they come out of the unit policy.

Frequently Asked Questions

Condo Insurance questions we get.

How do I know what my association's policy covers?
Ask the association for the master policy declaration page. It will say bare walls, single entity, or all-in, and that phrase decides how much interior coverage you need to carry. We are happy to read it with you.
What is loss assessment coverage and do I need it?
If a covered loss runs past the association's limits, owners get assessed for the shortfall. Loss assessment coverage pays your share up to its limit. It costs very little and the default limit is often a fraction of what a real assessment would be, so it is worth raising.
Is condo insurance required?
Your mortgage lender will almost certainly require it, and many associations require it in their bylaws. Even where neither applies, the master policy leaves enough uncovered that going without is a poor bet.

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