Condominium associations have master policies that cover the property, common areas and physical structure of your building. However, these master policies do not cover your personal property,your liability to others, and they may not cover improvements or customization to your unit.
Condominium owners also need to purchase a personal condominium home owners insurance policy, which is called an HO6 policy. That’s because the building’s master policy does not protect their personal belongings. Furthermore, it may not offer liability coverage within their homes.
MAKE SURE YOUR PERSONAL PROPERTY IS COVERED
Unit owners should check what’s covered in their building’s master policy. You can do this by reading your association bylaws or property lease. The master insurance policy should cover the common areas in the building, like the roof, basement, elevator and walkways.
It is a good idea to take an inventory of everything you own. Make a list, or even better use a video camera to videotape the contents of your home. Short of this walk around with a digital camera and take pictures inside closets, cabinets, drawers, and in all rooms. Store the videotape, pictures, or inventory list “off site”, so in the event of a total loss you won’t lose the record as well. The inventory will be necessary because your HO-6 policy must have enough coverage to replace your belongings if they are all lost.
Your condominium home owners insurance will also provide liability coverage. That way, you will be covered for accidents in the spaces you own. For example, if someone falls and injures themselves in your home, your policy would provide liability coverage, not the building policy.