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Should condo owners have their own insurance?

On Behalf of | Feb 22, 2023 | Condominiums & Cooperatives |

You may wonder who will pay for repairs to your condominium if it suffers damage. HOAs or condo associations usually have a homeowner’s master policy to cover building repairs. Still, condo owners might need their own insurance to pay for other damages.

The Motley Fool describes how the coverage of a condo association insurance policy differs from condo homeowners insurance.

Condo association coverage

A homeowner’s master policy pays for damage to the condo building itself. This includes the walls of the condo or the interior structure. Coverage also extends to common areas, the lobby, the roof, or the elevators in the building.

Condo associations and HOAs should also have liability insurance if someone gets hurt in a common area. However, this coverage usually does not extend to the condo units unless there was a problem with the building structure that contributed to an injury.

Condo owner insurance

To pay for damage to the inside of a condo unit, a condo owner needs a condo homeowners insurance policy. This coverage can replace the destroyed possessions of the owner and repair costs to the condo unit. Condo owner insurance can also pay for an owner to stay in a hotel if the condo is undergoing repairs.

Additionally, in the event a condo association cannot cover full damages to a common area, a condo owner’s policy may cover the amount through loss assessment coverage. Condo insurance also pays for liabilities stemming from injuries in the condo unit.

Condo associations may make it mandatory for condo owners to have their own condo homeowners insurance. In any case, having your own condo insurance may help you feel confident about living in a condo unit and dealing with the condo association in case your building suffers damage.