Condominiums are lovely properties that are located in vacation areas, and property owners need insurance policies to protect the condo. Most condo owner associations require all condo owners to have a master insurance policy and a condo policy. Some condo owners need supplemental insurance policies to fill in coverage gaps. Continue reading to get more information about what a master insurance policy is and why you need it for your property.
What Is a Master Policy for a Condo?
A master policy offers coverage for the condo’s exterior, the foundation, and communal areas of the condo community. The condo owners association manages the master policy, and all condo owners pay their dues to the association to retain their insurance coverage. After damage occurs, the COA files a claim with the insurance provider to get funds for repairs. Talk to an insurance agency if you are browsing condo master insurance policies for condo owners in your community.
What Liabilities Are Included in the Policy?
A master policy covers many liabilities that could happen in a condo community. Accidents involving property owners, their families, tenants, and guests are covered by the insurance policy, and the COA files a claim if anyone becomes injured on the property. Dog bites, falls, and other liabilities are included in the policy’s liabilities. The master insurance policy doesn’t include any accidents that happen inside the condos.
Why Is a Condo Policy Needed?
The condo owners must purchase a separate condo policy to cover the interior spaces of the condo, including the walls, floors, and ceiling. All the condo owner’s belongings are included in the items that are covered by the policy. The master policy doesn’t cover anything the condo owner has inside their property.
What Insurance Does the Owner Need When Renting Out Their Unit?
The condo owner might need landlord insurance to cover certain liabilities related to renting a property to a tenant. Tenants living in the condo should get renter’s insurance to protect their personal belongings and any damage they cause while renting the condo. By requiring renter’s insurance, the condo owner doesn’t face serious losses if the tenant damages the property, and the tenant can file a claim through the renter’s insurance policy to repair the condo
Does a Condo Owner Need Additional Coverage?
If condo owners have valuable personal belongings in the condo that exceed the condo policy’s maximum, they could request a rider and get more comprehensive coverage for these items. An official appraisal is needed to determine the value of the items, and the insurer sets up a rider for the items. If these assets are lost, stolen, or damaged, the rider gives the condo owner full coverage for these assets according to the appraised value. Jewelry, antiques, and other valuables are covered by these insurance riders.
A condo master insurance policy is required for all condo owners who live in the community. Condo owners pay dues to the COA for the master policy, and these policies pay for any damage or liabilities that apply to the communal areas and the condo’s exterior. Condo owners need a separate policy to cover the interior of the condo and personal belongings in their unit. Talk to an insurance provider to learn more about each policy and why you need them as a condo owner.
