Many of us love the common spaces and amenities that come with living in a condo. However, the HOA needs to insure these spaces. This coverage is separate from the homeowners insurance residents have on their units. For some people, this might lead to confusion concerning the coverage of HOA vs personal condo insurance.
The primary issue is that the HOA is responsible for some things while the condo owners are responsible for others. This post will look at the differences between personal condo insurance and an HOA master policy.
Typically, the condo association is responsible for all common areas. It could include hallways, sidewalks, parking areas, landscaping, and the building. If the condo community has amenities like pools, gyms, or meeting spaces, it will also cover that.
The HOA owns all these spaces and amenities, so they have responsibility for their upkeep and safety. With an HOA master policy, the community has coverage that can pay for repairs to damaged property. The policy can also cover liability if a person has an injury in one of the common spaces. The insurance cost is part of what you pay for in your condo dues and fees.
The master policy covers much of the building and common spaces. So what does a personal condo policy cover? The short answer is that it covers the interior of your condo unit.
With the building and common areas having coverage, you still have personal ownership of the unit. If you need repairs, condo insurance might cover it. A personal condo policy may also cover damage or loss of personal property in the unit, and it can cover liability if a guest suffers injury there. The policy might also cover additional expenses if you can’t live in the condo during repairs.
As you might imagine, different HOAs might have different levels of coverage. Some might want limited responsibility, while others want more control. The difference can reflect whether the HOA has a bare walls or an all-in master policy.
A bare walls policy offers the least coverage in covering the building’s structure and common spaces. With an all-in policy, the HOA has comprehensive coverage. Beyond the building and shared spaces, the coverage extends to inside the individual units.
The levels of coverage can also fall between the two extremes. Residents must also adjust their personal policies to fit the HOA policy. You must also realize that the additional coverage only extends to repairs and upgrades. The condo owner will need a policy for liability and personal property. The best advice when confused or unsure of the type of coverage to have is to speak directly with your insurance agent for clarification.
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