Condominium Insurance Policies – More than just contents coverage!
Condominium unit owners have the best of both worlds…like a homeowner, they have title to their own unit, and like a tenant, they have access to common property such as the lobby, swimming pool, roof top patio, or other amenities.
We often come across the misconception that a condominium insurance policy is similar to a tenant insurance policy in that it only covers a person’s personal contents and liability. Many unit owners have minimal contents, and therefore feel that an individual condominium insurance policy is not necessary as the condominium corporation covers “everything else”. This is not the case. Condominium insurance policies are actually quite complex and extensive in the coverage they provide.
Firstly, we would like to define what a condominium corporation is, or does. The corporation is responsible for managing operations, business affairs, and property interests of the unit owners. Most condominium corporations will establish a board of directors, set maintenance fees, maintain a reserve fund, hold unit owner’s meetings, and maintain common property.
The condominium corporation’s insurance policy typically covers the following:
A personal condominium insurance policy purchased by a unit owner typically covers the following:
It is important to note that under a personal condominium insurance policy the coverage is subject to the limits stated in the policy, as well as the policy deductible.
Should you have any questions regarding condominium insurance policies, or if you would like a complimentary review of your coverage, please do not hesitate to contact us!
The Costen & Associates Team