Anyone who buys a condo also joins an association called homeowners association (HOA) and pays related fees. HOA is a group of people who are also the property owners in a shared-space. HOA members plan and create rules to handle the upkeep of the building and also the common areas and also buy insurance for this upkeep and related risks. This insurance is called Condo Master Policy. Your HOA fees pays for the Condo Master Policy or HOA insurance collectively. Of course each condo owner will carry his/her own personal property insurance that the HOA Master Policy does not cover. Hence to have the best personal coverage, it is good to know what your HOA insurance covers.
Condo Master Policy
Condo living basically means living and sharing some common areas; sharing things like the lobby, conference rooms, elevators, garages, and fitness centers. If you have decided to live in condo, we strongly urge you to learn more your homeowners association insurance policy. Why? Because if your roof needs to be replaced, it will not just be your roof, but everybody’s roof. HOA insurance deals with things like that. You should be aware that your condo master policy or HOA insurance will only cover the damages to the common areas and building up to certain limits. Since there is always a chance that damages might surpass these limits, it will fall on you as the condo owner to make up the difference. To avoid paying out of pocket for these excessive damages, you need to add loss assessment coverage to your condo insurance.
What does HOA Insurance Usually Cover?
Studs-out coverage is usually what HOA insurance covers. Studs-out means everything that is outside of your condo unit. The HOA insurance covers for incidents such as roof damage as result of rain or snow. It covers the elevators if not functioning, or if there is electrical damage in the lobby. So your individual coverage should protect you for all risks and daages inside your condo unit such as walls, flooring, fixtures, plumbing, and cabinets. There are some HOA insurance coverage that also covers inside your condo. If that is teh case, you might need less coverage for your own property such as just coverage for belongings and personal property.
How about injuries to you or your guests?
Most Condo Master Policies also covers injuries in common areas such as pools or fitness centers for you and your guests. But if the injuries are inside your condo, the master policy might not cover. Your personal coverage should cover these injuries if they are full coverage. Never the less, you must check your HOA coverage to get better feeling about what is covered and what is not covered.
How about improvemnets and remodeling?
Again, check your Condo Master Policy or your HOA insurance to get better feeling about what it covers if remodeling. Some Condo Master Policies cover remodeling and improvements to your condo unit.