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Condo Insurance: Do I Need It and What Does It Cover?

By August 9, 2021September 29th, 2021Condo

Condo insurance will cover your belongings if they are damaged or stolen, and also takes care of any liability costs for guests who are injured in your home. Many policies provide “loss of use” coverage, which takes effect if your condominium is severely damaged by a fire or storm, and you must live somewhere else during repairs.

When you purchase a condo, you own your unit and share joint ownership of the building with the other residents. That joint ownership includes the building and all common areas, such as the gym, pool, and grounds.

This arrangement means there are two policies at work: the condo insurance that you purchase, and the condo association, or master, insurance that is provided by the condo association. Here is what you will need to know:


What does the condo association policy cover?

Your condo association’s master policy can be one of two types:

An “all-in” condo master policy: This type of policy will cover the fixtures in your condo, including things like the appliances, wiring, plumbing, and carpets. It will not cover your belongings.

A “bare walls-in” condo master policy: This policy does not cover anything in the condo’s interior. It might include the plumbing and electrical systems, but you will need to review the association’s master policy to verify what your condo insurance policy needs to cover.

Depending upon the details of your condo association’s master policy, your condo insurance will need to include coverage for:

  • The interior walls
  • Your appliances
  • Your personal property and valuables
  • Protection from liability claims


You will likely need more coverage from your condominium insurance if your association has a “bare walls-in” condo master policy.


Do I really need a condo insurance policy?

The short answer is an emphatic ‘yes’! Since the condo association only provides coverage for the exterior of the condominium, you are responsible for the coverage that protects your personal property from theft, fire, or other perils. Your personal property includes everything on which you can place a monetary or sentimental value.

Even more importantly, you must protect yourself from liability claims and lawsuits. If someone is injured in your condo or you are held responsible for damage to someone else’s property, your condo insurance will cover it. Also, keep in mind that liability claims might lead to lawsuits, and you will want to have protected yourself financially if that happens.


How much condo insurance should I buy?

The best method for determining how much condo insurance you need is to take a home inventory. While this might sound like a lot of work, it is worth doing because most people underestimate the value of the things they own. You can find an inventory app online to make the task more manageable.

Of course, you will need to review your condo association’s master policy before making a final decision on how much coverage to purchase. Another thing to consider: For complete protection, many people buy an umbrella liability policy. An umbrella policy provides liability protection that will exceed what your condo insurance covers.


How much does condo insurance cost?

Like any other type of insurance, the premiums for condo insurance will be based on the value of the property you want to insure. If you have valuables–jewelry, fine art, antiques, or collectibles—you will need to add coverage for those items.

The cost of condo insurance can vary, so it’s important to talk to an experienced insurance agency to ensure that you are adequately covered at a fair price.

Where can I buy condo insurance?

It always pays to work with a professional insurance advisor to help you choose the right policy for your needs. Ask one of our insurance experts at White Cloud Insurance about condo insurance. They can provide you with competitive condo insurance options and answer all of your questions at 305-556-1488. Or, if you prefer, fill out our condo insurance form or send us a message at