American Option Condominium Insurance
The condominium association typically covers the condominium building, commonly owned property, and liability insurance for the association under a Master Condominium Policy. Insuring the interior of the property is the responsibility of the homeowner. Condominium insurance will help cover such incidents as fire, theft, vandalism, or even wind. The interior consists of items such as drywall, cabinetry, flooring, and all of your personal property. When it comes to personal property, we recommend Replacement Cost as opposed to Actual Cash Value.
Condominium insurance is an excellent way to protect both your peace of mind and your financial well-being. Purchasing condominium insurance can offer protection for your personal possessions, any improvements or renovations you’ve made to your unit, and against lawsuits due to accidents occurring within your unit. Certain policies even offer coverage extending to temporary living expenses should your unit become uninhabitable for a period of time.
What does my condo or co-op association’s policy cover?:
Condominium or Co-op Associations often have their own master policy, but it’s very unlikely that they’ll offer you the coverage you’ll need to be made whole should the unexpected occur. Condo and Co-op Associations generally offer one of three types of policy.
Bare Walls: A Bare Walls policy is the least comprehensive policy option and covers only the structure and fixtures, as well as the furnishings located in common areas, such as the pool area and lobby. It does not offer protection for anything inside your own unit, including your personal possessions.
Single entity: This policy is slightly more comprehensive than the Bare Walls option and offers protection for everything included in the Bare Walls policy, as well as certain fixtures within your individual unit. This can include carpet, appliances, and cabinetry. It will not include your personal possessions. Each policy will outline specifically what items and features are covered and which remain the responsibility of the unit owner to insure.
All inclusive: This is the most comprehensive master policy, and it generally covers everything found in both the Bare Walls and Single Entity policies and also offers more comprehensive protection to the interior of your unit.
If my Condo Association’s master policy is “All Inclusive,” do I still need additional coverage?
It’s always to the condominium owner’s benefit to have the peace of mind that only truly complete coverage offers. Even all inclusive policies can leave the unit owner unprotected from damage to renovations or upgrades they’ve made to their unit, and they can sometimes only cover actual cash value rather than replacement cost. Sadly, most people only discover the true limitations of their master policy once they really need the coverage. We can work with you to provide additional coverages and review all of your options for protection your property.
Where should I start?
Give us a call at 888-985-4032, and we’ll outline your options and help you determine the best coverage for your needs. Condominium insurance can seem like a confusing thing, but it doesn’t need to be. You have options.