Condominium Insurance Information

Condominium insurance provides financial protection against disasters.

Owners of condominium units do not own the entire condominium complex. Typically, they own their own unit outright and share ownership of the rest of the complex with all the other owners.  From an insurance point of view, that means all individual unit owners have a collective responsibility for insuring areas of the complex owned in common -- building exteriors and hallways, the pool area, etc. A condominium association typically collects monthly dues from unit owners and uses a portion of these funds to insure common areas.

Meanwhile, the unit owner typically is responsible for separately insuring everything within the four walls of his or her individual unit.  However, rules differ from complex to complex, and it's important to ask the right questions to ensure you have proper insurance coverage.

Condominium insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters are covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.

Why Do You Need Condominium Insurance?

It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That's important because chances are your home is likely one of your largest investments.