Condo insurance provides coverage for the inside of your condominium. The external areas fall under the jurisdiction of your condo association and must be covered under the association’s insurance policy. Depending upon the specifics of your condominium association’s master policy, your condo insurance may include coverage for:

• The interior walls
• Your appliances
• Your personal property and valuables

In addition to covering your belongings in the event of a loss, your condo insurance also protects you against liability claims if you are responsible for another person’s injury or property damage, or if you have legal fees to pay due to a lawsuit.

Condo insurance policies typically cover what the condo association’s master policy doesn’t cover. A condo association master policy can be of two types:

• An “all-in” condo master policy: Also known as a “single-unit” master policy, this type of policy covers the fixtures in your condo such as the appliances, wiring, plumbing, and carpets, but does not cover personal property that you own.
• A “bare walls-in” condo master policy: This policy does not cover anything contained within your walls. It may or may not cover your condo’s plumbing and electrical systems. Be sure to carefully review the association’s master policy to determine what your condo insurance policy needs to cover.

You will need to buy more of your own condominium insurance if your association has a “bare walls-in” condo master policy than if it has “all-in” condo master policy.

Your condo insurance policy will cover you for loss or damage to your personal possessions, and provide coverage for personal liability and medical payments. Additionally, it will often cover loss of use in the event that your condominium becomes badly damaged by a fire or storm and you need to live elsewhere during repairs. 

Insurance for a particular condo is known as a HO-6 policy. HO-6 policies typically provide you with coverage for a range of causes of loss. You may have to purchase additional coverage for specific items such as artwork, jewelry, and other items of value.

Your condo association’s master policy, or HOA policy, will cover damage to your condo building, grounds, and other external features. Your condominium policy therefore needs to cover your personal possessions, appliances, and sometimes installed fixtures and other attached features in the unit. In the event of a covered loss, such as a burglary or fire, you will need to file a claim with your insurance company, and/or the condo association’s insurance company.

Condo association coverage will only cover the exterior of the condominium. For the interior and for your possessions, condo insurance will cover potential losses, such as theft or damage from fire. You also need to protect yourself from liability claims and lawsuits if someone is injured in your condo, or if you are responsible for damage to someone else’s property. Note that liability often covers your responsibility for libel, slander, and other bodily injury claims. Because liability claims can lead to lawsuits, it is important to evaluate the amount of coverage you need to protect yourself financially.