Condo owners have benefits that aren’t shared by the average homeowner, in particular freedom from having to care for landscaping and being able to benefit from security services provided by their condominium association. However many condo dwellers question whether or not they should pay extra for private condo insurance coverage. Many are under the false assumption that insurance coverage is provided by the condo association, but this isn’t always the case. To find out whether or not you’re a candidate for a supplemental condo insurance policy, read on.
Misconceptions About your Master Insurance Policy
If you live in a condo, you probably pay monthly dues that go towards what’s called a “master insurance policy.” But don’t mistake this for an insurance policy that’ll cover you in the event of damage to your personal property. Your condo’s master insurance policy only goes so far as to cover the following.
- Damage to common property that all residents in your association use. This means that if the pool clubhouse is damaged in a fire, the master insurance policy will pay for it. However you won’t be covered if you burn your kitchen down trying out a new recipe.
- Personal injuries that occur in common areas. If someone slips and hurts themselves in the parking lot, the association will pay for this. But if you or a guest slips and breaks a bone while trying to put out the fire in your kitchen, you’ll be responsible for covering the medical damages.
- Burglary and vandalism to common areas. As with everything else that’s covered by the condo’s master insurance policy, only common property items that are stolen or vandalized are covered. If someone breaks into your condo and takes you for everything you’re worth, this isn’t covered.
Supplemental condo insurance coverage isn’t required, but strongly recommended if you want to safeguard your personal property and ensure adequate protection against bodily injury.