The Basics of a Condo Master Insurance Policy
Just like condo units bridge the gap between apartments and houses, condo associations bridge the gap between landlords and homeowners’ associations. While responsible for the grounds and common areas, condo associations also allow condo unit owners the freedom of ownership of the interior of their units. This balance of ownership, responsibility, and liability is best reflected in the Condominium Master Insurance Policy (sometimes known as a HOA Master Policy). Today, we’re going to cover the basics of a condo master insurance policy for both the association and its unit owners.
What the Master Insurance Policy Covers
A vital part of the relationship between owners and the association is for both sides to understand where responsibilities – both domestic and legal – stand. For the association, it’s important to make sure that they have full coverage to address any gaps, and for unit owners to know where their own insurance will need to come into play. For a full rundown of what a master policy contains, talk to the H&K Insurance Agency’s condo specialists today.
Shared Spaces and Buildings
A master insurance policy covers places that are regularly used by multiple condo owners, known as shared or common areas. This includes both limited common areas and general common areas – two subjects covered more in-depth in our Condo Common Areas and Responsibility article. These can include areas such as condo parks and pools, as well as buildings such as a condo gym, event space, as well as the association’s office. Parking lots, green areas, and walkways are also included in shared spaces.
Structure of Condo Units
The major interaction between individuals and the association lies where the condo’s insurance coverage ends and the unit owner’s insurance coverage begins. Like with any insurance coverage, there are many types available (we go over these in more detail in Condo Association Rules: Insurance Policy). Let’s look at the two major types most associations have:
- Bare Walls-In: A ‘Bare Walls-In” policy focuses on the actual structure of the condo – that is the exterior, roofing, framing, wiring, piping, insulation, and the drywall itself. What it does not cover is the interior of the home: the fixtures, installations, and appliances. Coverage of these is left up to the unit owner.
- All-In: An “All-In” policy instead includes the fixtures and installations, and may include coverage to built-in appliances that come with the unit.
A Detailed Master Policy Helps Condo Unit Owners
Making sure, as an association, that your master policy is clear isn’t only a boon to the association, but also to current and new unit owners. It will allow them to better understand what kind of condo insurance policy the unit owner needs to get full coverage, and it’s one of the three things our condo specialists recommend gets explained to new unit owners to better help them understand coverage.
If you want to learn more about how a condo master insurance policy works, either as a condo association or individual condo unit owner, contact the H&K Insurance Agency today. Our condo specialists will help you better understand new or existing policies, and how to get the best coverage for all parties.
