Condominium Insurance

Condominium insurance is a specialty type of homeowners insurance. It provides coverage for the structure, its contents and personal liability for an individual owner or tenant against losses such as fire, theft, vandalism, and malicious mischief that might occur in the communal areas of a condominium complex.

For example, if you rent out an apartment within a building that has condominium insurance, your personal property should be covered in case there is a loss.

Condominium insurance is a valuable ­addition to your homeowner's policy. It provides coverage for the building, its units, their furnishings, and other property not individually covered by the policy. If you have personal belongings, such as computer or clothes in your unit that would be damaged if the building were struck by lightning, for example, they would be covered under a condominium insurance policy.

Condominium policies are small and specialized, with the goal to provide protection for the individual homeowner's personal property as well as the building itself. This coverage is provided at an affordable price by treating all units in a multi-unit complex as one.

The contents and personal liability portions of the policies are usually written together with an automatically renewed policy, so your coverage continues year after year without having to re-apply. The premiums for the automatic renewal portion of the policy are typically much lower than those associated with a traditional standalone homeowners' policy (which you would purchase to cover just your personal property).

The cost of your condominium policy depends on the type and amount of coverage you purchase. Your insurer will help you choose a deductible that is appropriate for your needs based on the valuation of your property. A higher deductible means lower premiums, while a lower or zero deductible will typically result in higher premiums.

Although it is not a legal requirement, our advice is to purchase insurance. Some states' and local communities' codes require owners' associations to carry insurance on the common areas of the development or subdivision. Your insurer can provide you with more information about these requirements.

The owner(s) of the building are responsible for taking out insurance on all common areas that would be insured if there were an association or condominium association in place. These may include hallways, corridors, lobbies, bathrooms, or walkways.