Condominium Insurance
What Does Condominium Insurance Mean?
Condominium insurance is a type of homeowner’s insurance that provides financial protection for a policyholder’s condominium against various perils, such as fire, weather damage, vandalism, smoke, and explosions. However, it only covers the individual unit and does not extend to common areas like hallways, staircases, or elevators.
Insuranceopedia Explains Condominium Insurance
Condominium insurance provides some protection for your personal property, but it often does not cover damage from water, vermin, or earthquakes. The condo association’s master policy plays a significant role in determining the minimum coverage a condo owner should purchase. Some master policies only cover common areas and the building’s exterior, while others may extend to certain items within individual units, excluding personal property. The appropriate amount of coverage depends on factors such as the risk level in the area (e.g., flood coverage may not be necessary in an arid region), the value of the policyholder’s personal property, and other relevant considerations.
