All homeowners need to maintain insurance coverage on their properties. For single-family units, that generally means protecting the house itself, surrounding land, and other structures on the property. Of course, when it comes to multiple family units, matters become a bit more complicated.
That’s certainly the case with condominiums. In these residential complexes, two distinct types of insurance are required: HO6 and mater policies. While the latter covers individual unit owners’ belongings and certain other elements, master policies work a bit differently.
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Digging Deeper into Condo Master Policies
Master policies are designed specifically for residences with multiple owners and units as well as shared spaces. They’re chosen by condo owner’s associations as opposed to individual residents. They’re not meant to replace individual coverage. Instead, they supplement it.
Condo master policies are available from companies like Garrity Insurance. Different master policies are available, and insurance agents can help with choosing the right one to cover everyone’s best interests. For now, consider the following important points for selecting an appropriate level of coverage.
Bare Walls-In Policies
As the name indicates, bare walls-in policies only cover the basics. Those might include walls along with everything inside the walls, like plumbing, and electrical wiring. These policies essentially provide protection for components that naturally come along with the condos on the property. They can cover damage caused by electrical malfunctions, burst pipes, severe storms, and other hazards.
Bare walls-in policies don’t cover items inside the condos, though. Appliances, flooring, electrical fixtures, home decor, countertops, and other items would be the responsibility of individual condominium owners to cover with their own insurance policies. These types of policies can be helpful, and they’re generally less expensive than more comprehensive alternatives. Still, they leave quite a few gaps.
Comprehensive Condo Coverage
Alternatively, condo owner’s associations can choose more comprehensive insurance policies. These are known as all-in-one policies, and they cover far more items than their bare-bones counterparts. They may extend to appliances, fixtures, and other items that come along with the condos. On the other hand, they won’t cover items condo owners furnish themselves, such as furniture and clothing. Again, those belongings would need to be covered under an individual insurance policy.
As most people might expect, all-in-one policies are more costly than bare walls-in coverage. They also cover more points, though. That leaves fewer gaps in coverage and can prevent significant out-of-pocket expenses for not only individual condominium owners but also the condo owner’s association and other parties who may be involved.
Keep in mind that all condo master policies cover interior common areas, such as hallways, stairwells, elevators, and parking lots. They can also cover outdoor common areas and amenities, like swimming pools, meeting facilities, grilling areas, and fitness centers. These policies may cover parks, gardens, and other natural features on the property as well. Just how far their coverage goes varies by policy. At the same time, condo owner’s associations can choose the level of coverage their master policies provide. They may choose to hold their members responsible for some areas and amenities.
Choosing the Right Master Policy
Several condo master policies are available, each one with different levels of coverage. Condo owner’s associations should consider their inclusions and gaps carefully when selecting a policy. Though a bare walls-in policy will certainly be less expensive, paying more for more comprehensive coverage is typically recommended.