How can you ensure that your newly purchased condominium is amply covered against any damages or risks? The simple answer to this question is, applying for either a master condo or an individual unit owner’s policy.
As an owner of a condo, you might be held responsible for plumbing, wiring, and different fixtures in your condo. Some parts of the condominium can also be covered under the condo association. So, it’s totally up to you if you wish to split your insurance between the condo association and a condo master insurance policy.
What is Condo Master Insurance?
The homeowner’s association or the condo association might hold a condo master policy, under which your unit might be covered. The premium for such policies is taken out of your maintenance fee.
This sort of policy covers, at least, the damage to the property and general liability. Common areas shared by all occupants, such as stairs or hallways, are also covered under such policies.
On the other hand, general liability and property damage coverage can differ with different policies. Therefore, a master condo insurance plan is extremely beneficial for the occupants and the condo association.
Why Should You Own or Pay for Condo Insurance?
Initially, it may look as if you’re wasting your hard-earned money, but it is one of the investments that pay off in the long-term. The premium for such policies is usually in the form of a monthly fee, which usually belongs to the HOA or condo association.
You must cover your belongings against any damage by purchasing condo insurance. Even if you’ve just bought a condo or have recently started renting one, you should be open to the idea of paying for a condo master insurance policy.
How is Condo Master Insurance Different from Other Policies?
You could be wondering how a simple homeowner’s insurance plan and a master condo plan differ. The features and risks are the same for both, yet the main difference is that the condo homeowner’s plan covers just one condo unit, but the homeowner’s insurance covers the entire home.
These two are different from the master insurance plan, which covers the shared amenities provided to all occupants, apart from the whole unit. However, these plans contain a few deductibles you might want to study before you sign the dotted line.
What Sort of Coverage Is Offered Under a Condo Master Insurance Policy?
The homeowners and the HOA must understand their responsibilities and liabilities. Hence, it is imperative that there are no gaps between the expectations and the coverage extent.
A master condo plan is especially apt for such cases, as it covers:
- Entire Condominium unit
This policy can also cover the unit and all of the belongings of the owner in and around the unit. Make no assumptions; the homeowner is responsible for any risks that come with the property, such as break-ins, theft, repairs, vandalism, and so on.
- Shared parts of the property
Apart from getting full coverage for the property, the shared amenities such as stairwells, swimming pools, recreational areas, etc., are also covered under the condo master plans.
What Types of Condo Master Plans Are Available in The Market?
- Coverage offered to just the actual, bare minimum structure of the condo.
This sort of policy includes the exterior, plumbing, electric wiring, roofing, and so on and doesn’t cover the fixtures in the condo unit. For that, you will have to purchase the complete coverage policy mentioned below.
- All policies cover the fixtures in the condominium against elemental damage. This gives the homeowners complete protection against risks.
Thus, homeowners can select and pay for either full or the bare minimum coverage, depending on their needs. All unit owners are responsible for the property they own. Policies do come with deductibles, which is divided amongst all the occupants.