There are many subsets of homeowner's insurance. Condo insurance is an example of one these categories. Basically, this kind of insurance gives the condo owner coverage for liability protection and personal property. It is essential to understand the details of this insurance, particularly when reviewing the amount of coverage that is in place with the condo Home Owner Association (HOA) master policy.
Bare Walls Coverage
If the HOA master policy states that the association is responsible for elevators and stairs, roofing, flooring, and exterior walls, then the coverage is known as bare walls. In this example, the condo owner is responsible for everything that is inside the walls of his or her unit, such as counter tops, their own personal property, the carpets, interior partition walls, etc. To put it simply, the condo insurance policy for the owner should cover everything the HOAs master policy does not.
Single Entity Coverage
Under this kind of master policy, the HOA covers the building and a certain amount of the interior too. Carefully review the master policy to understand what fixtures within the interior it covers. The condo owner is still responsible for insuring any upgrades and alterations and, of course, any of his or hers personal property.
Once you have found out what is not covered by the HOA's master policy, you can discuss with your insurance agent what extra coverage you might wish to acquire. Remember that although some things are covered by the master policy, they are often capped at specific amounts, so might want to acquire coverage on your own to make up the difference that may be incurred. Many leave out their personal belongings from coverage, so be sure to account for these things as well when buying a policy. Also, it is wise to review your coverage on a yearly basis to make sure are still adequately covered. This would be a good idea if, for example, you make any interior upgrades or acquire new belongings.