Condominium Insurance

Example

“Janet's condominium insurance covered the damage to her kitchen cabinets and appliances, while the association's master policy handled the roof repair from the same storm.”

Memory Tip

Think 'CONDO = CONTENTS' - condo insurance mainly covers your contents and improvements inside your unit walls.

Why It Matters

Condominium insurance fills critical gaps left by association master policies, protecting your personal belongings and interior improvements that could cost tens of thousands to replace. Without proper coverage, you could be responsible for losses to your unit's contents and improvements, plus assessments from the association for building damage.

Common Misconception

Many condo owners mistakenly believe the association's master policy covers everything in their unit, or that they don't need separate insurance because they don't own the building. In reality, master policies typically only cover common areas and the building shell, leaving unit owners responsible for their personal property, interior fixtures, and improvements.

In Practice

When a water pipe burst in the wall between Mike's condo and his neighbor's unit, it caused $15,000 in damage throughout both units. The association's master policy covered the $3,000 cost to repair the pipe in the common wall area, but Mike's HO-6 condominium insurance covered his $8,000 in damaged flooring, kitchen cabinets, and furniture inside his unit. Additionally, Mike's policy provided $2,000 in additional living expenses when he had to stay in a hotel for a week during repairs.

Etymology

From Latin 'con' meaning 'together' and 'dominium' meaning 'property' or 'ownership.' The insurance type developed in the mid-20th century as condominium ownership became popular in the United States.

Common Misspellings

Related Terms

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Other insurance terms you should know

See Also