While condominium units belong completely to their owners from their unit walls inward, their exteriors are usually communally owned. Condominium communities feature joint ownership of building exteriors, roads and other common areas by all unit owner-members of those communities. Because condo units share aspects of their legal ownership with other parties, their insurance requirements differ from those of single-family homes.
Condo Master Insurance
Standard single-family home insurance covers the interior and exterior of a house. A condo owner’s unit insurance, though, isn’t intended to cover the exterior of the owner’s building. Most condominium communities are controlled by condo or homeowner associations responsible for obtaining a master insurance policy to cover building exteriors. Condo association master insurance policies come in two different coverage levels: bare walls-in and all-in, with both policies covering certain unit interior items.
Condo Interior Insurance
Bare walls-in condo master insurance is designed to cover all real property in a condo from the interior framing inward. Condo bare walls-in insurance won’t cover installations such as any bathroom and kitchen fixtures, flooring or countertops. According to, condo master insurance all-in policies cover all fixtures and installations or additions within the interior surfaces of unit interiors. For example, a walls-in condo master insurance policy would cover a unit’s kitchen cabinets, bathroom sinks and flooring.
Condo Owner Insurance
A condo unit owner’s insurance coverage requirements depend on just what the condo association’s master insurance policy covers. Condo owners with bare walls-in master insurance coverage have greater insurance needs than owners covered by walls-in master insurance policies. Chances are, the cost of your individual condo unit owner insurance will be less if your unit is covered by a walls-in master insurance policy. Individual condo unit insurance also comes in cash-value or replacement-cost coverage levels, with replacement-cost policies paying to fully replace your personal property.
Master Insurance Deductibles
Condo master insurance policies typically feature deductibles on the coverage extended to common areas and other condo community property. For example, high winds might damage roofs on several condo community buildings, with master insurance kicking in to pay for repairs. All members in a condo community, though, are required to help pay for the cost of the community’s master insurance policy deductible when the insurance is used. Condo owners can add master insurance policy deductible coverage to their own unit insurance policies.
Article By: Tony Guerra