Condominium owners sometimes assume that the Association’s master insurance policy is all the coverage they need. The master policy actually only covers the building, not your personal belongings, or any upgrades you’ve made to your unit. For example flooring, new cabinets, appliances, or renovations are generally not covered by the master policy. Neither does it cover parts of the building that are used only by you—like the HVAC units or the pipes that feed into your condo from the main pipes.
All residents need their own insurance for the insides of their units, their belongings, and any damage that might be caused by something within your unit (such as a leaking toilet). In a few rare cases where coverage is provided under the master policy, you will still be responsible for the deductible.
Additionally, the Rules and Regulations state that you must carry insurance on your unit—and keep a copy of your Certificate of Insurance on file in the Management Office—but do not mandate the amount of coverage you must carry.
The Board has the following recommendations:
1. An “HO-6” policy that provides a minimum of $75,000 coverage for “building coverage” and a minimum of $50,000 for personal property. You may want more coverage based on the upgrades/extras in your unit and the value of your personal property and decor.
2. “All Risk” policies will best match the broad coverage found on the Association policy, and have less potential for a gap in coverage.
Please contact your insurance agent to obtain the coverage that meets your needs.