Condominium insurance can be confusing. In fact, some condo owners aren’t even aware that they need to have condo insurance until they are faced with an emergency situation. While individual condo insurance policies can be a great way to protect what you own, it is important to know the differences between individual and master policies.
Condominiums are unique because they involve multiple insurance policies. Different condo owners have different needs and Portland Insurance has the information to help you. Condo insurance is complicated and not as commonly understood as other forms of insurance, such as renters or home insurance. But that’s where Portland Insurance comes in. We’re experts in all things insurance, and we can clear up any confusion about condo policies for you.
When it comes to homeowners insurance, some homeowners are happy with the standard level of coverage that comes with their home’s construction. However, others want to go all-out and purchase additional coverage to ensure their building is protected if a flood, fire, or other disaster strikes. Homeowners with individual condo insurance policies should check carefully to ensure that their coverage is sufficient to cover the cost of rebuilding their condo. Owners of individual condo insurance policies are also advised to review their insurance policy at least once or twice a year to make sure they are receiving the most effective coverage available to them.
What is an Individual Condo Insurance Policy?
Condo insurance is a policy that every condo owner is required to have. This is your responsibility because it protects your personal property and offers liability protection in the event of an accident within the walls of your unit. It’s very similar to homeowners coverage in that it provides:
Personal Liability Coverage is insurance that can protect you from a claim or suit by others for injuries or property damage for which you’re responsible.
Personal property coverage is designed to provide coverage in the event that any of your personal belongings are stolen, damaged, or otherwise destroyed by a covered circumstance.
If a covered loss happens to your condo, you may be able to add Loss of Use Coverage to your insurance policy. This coverage provides compensation for temporary additional living expenses if you have to live elsewhere due to the fire or covered loss. It covers items like your rent and food for another apartment or hotel, as well as other expenses like laundry.
Condo owners are in a unique situation where they own part of a building but not all of it. They have two insurance policies to make sure everything is protected: their individual condo unit owner’s policy and the Master Condo Policy.
What is a Master Condo Insurance Policy?
The Master Condo Policy, or condo association insurance, is the policy with two main areas of coverage: general liability and property damage. The maintenance fees you pay are responsible for the premium. The Master Condo Policy covers the exterior walls, stairways, recreation rooms, elevators, common hallways, and grounds. However, it’s important to note that these coverages could vary in the level of protection they offer.
For example, coverage can be limited to only the common areas or include all structures within your individual unit. It’s vital to understand the type of coverage your condominium association’s master policy provides before you buy a unit so you can find the right individual coverage you need as a condo unit owner! That’s why working with a local and knowledgeable agency like Portland Insurance is the best choice.
For many condominium associations, the decision to purchase a master insurance policy is easy, as the process is often streamlined and simplified. However, some associations are not large enough to meet the minimum requirements for a master policy or they have unique needs that make a master policy prohibitively expensive. Condo owners should understand they have options if they want to find stand-alone insurance quotes.
Condominium insurance can be confusing. Contact us at Portland Insurance today so we can make condo insurance simple for you.