What is Condominium Insurance?
If you are considering condominium living you should schedule an appointment with a qualified insurance carrier prior to taking ownership of your condominium. Following are some basic sections you will find in a condominium insurance policy.
As a condo owner, one’s insurance needs are different than one who owns a home. The reason is because condominium master insurance coverage in Massachusetts, purchased by the condo association, covers the unit’s building, the common areas, and the condo association’s liability.
The master condo insurance policy in Massachusetts, however, does not cover the unit owner’s personal belongings in the condo that is damaged by vandalism, theft or fire. The master policy, also, does not cover the unit owner’s personal liability in the event of a lawsuit.
The Coverage Parts
A typical Condo Insurance policy has a few different sections of coverage. Most likely, one’s policy would include the following coverage parts:
- Coverage A – The Dwelling
This part of coverage provides a standard $5,000 of coverage for building items such as additions, alterations or improvements to the unit. This amount can be increased for an additional premium.
- Coverage C – Unscheduled Personal Property
This part of coverage pays for damage to personal property of the insured arising from a covered peril.
- Coverage D – Loss of Use
This coverage part pays an insured if the insured incurs additional living expenses, beyond normal living expenses, while living at another location if the residence premises is unavailable due to a covered peril. It includes additional living expenses as well as fair rental value.
- Coverage E – Personal Liability Coverage
This coverage part protects an insured if a legal suit is brought against him or her as a result of legal responsibility for bodily injury or property damage to others. This will protect an insured if another person is injured on or off any insured location.
- Coverage F – Medical Payments to Others Coverage
This coverage part will provide payment of medical expenses for someone that has undergone bodily injury as a result of the personal activities of any insured or as a result of the insured location. Limits do apply to the extent of the medical expenses covered. This coverage applies only to a person on the insured premises with the permission of the insured and a person off the insured premises if the injury is caused by the personal (non-business) activities of the insured. This coverage part also covers against injury caused by an animal owned by the insured.
Other Important Notes
There are other endorsements and additional coverages that can be added to a Condo policy by the insured. Each should be reviewed and discussed with your qualified insurance agent.
Check back for the final in this 3 part series – Condominium Insurance 101 – Condominium Master Insurance defined….
Interested in Condo Living – Contact me today!
Tori Denton, REALTOR®