Owning a condo comes with many benefits, including shared amenities and maintenance responsibilities. However, one crucial aspect of condo ownership that often causes confusion is insurance. Many condo owners believe that the association’s master policy provides sufficient coverage for their individual units. While the master policy is essential, it is equally important for each unit owner to have their own insurance policy. Here’s why: 
Oftentimes, customers are informed that their condo master insurance policy covers everything "walls-in," leading to the impression that additional insurance is unnecessary. This can be a dangerous misconception. 
For comprehensive protection, condo owners should consider obtaining a unit owners condo policy, which covers personal property, liability, and any improvements made to the unit. Proper education on this matter is crucial for making informed decisions about your insurance

Despite the comprehensive nature of the master policy, it does not cover everything. Here are five key areas where individual unit policies are necessary:

1. Personal Property: The master policy does not cover personal belongings inside your unit, such as furniture, electronics, and clothing. An individual policy ensures that your personal items are protected against theft, fire, and other perils.
2. Interior Upgrades: If you have made improvements or upgrades to your unit, such as custom cabinetry or high-end appliances, these may not be covered by the master policy. An individual policy can cover these enhancements.
3. Liability Protection: The master policy covers liability for common areas, but not for incidents that occur inside your unit. If someone is injured in your condo, your individual policy can provide liability coverage.
4. Loss of Use: If your unit becomes uninhabitable due to a covered loss, an individual policy can cover additional living expenses, such as hotel stays and meals, while repairs are being made.
5. Assessment Coverage: Sometimes, the association may levy special assessments to cover major repairs or damages that exceed the master policy’s limits. An individual policy can help cover these unexpected costs.

Having your own insurance policy provides peace of mind, knowing that you are fully protected against a wide range of risks. It ensures that you are not left financially vulnerable in the event of a loss that the master policy does not cover.

If you’re in the market for a condo and looking for a free insurance quote, click here for an appointment with one of our representatives!

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. The material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. Not for reproduction.