What Coverages Are Included in Condominium Insurance Policies?
Condominium insurance policies provide three main coverages. These coverages are:
- Dwelling Coverage, which covers physical damage to the owner-occupied unit
- Personal Property Coverage, will help pay for damage to personal belongings
- Personal Liability Coverage, designed to protect an insured from lawsuits resulting from the legal responsibility of bodily injury or property damage to others
Of these three coverages mentioned above, Dwelling coverage tends to vary the most per individual unit owner. This is due to unique Condominium Master Policies, which may be primary for some losses. There are also a wide range of Condominium bylaws that may impact the required Dwelling coverage limits and deductible.
How Much Structural Coverage Should Massachusetts Condominium Owners Have?
As previously mentioned, the amount of Dwelling coverage will vary depending on the Condominium Association’s Master Policy and Condominium Association Bylaws. There are two common types of Master Policies which provide a different level of protection for structures within individual units:
- Single Entity policies, designed to cover all real property but only the cost required to return the building and units to the original condition
- All-in policies, similar to single entity policies as they cover all real property of the unit, but these policies extend coverage to permanently installed fixture upgrades
In most cases, unit owners require a Condominium policy that covers the Master policy deductible and to fill any gaps in the Master policies coverage.
Condo policy coverage can be enhanced by purchasing endorsements or policy packages. Scheduled Personal Property, Special Personal Property Personal Injury and Loss Assessment Coverages are among many additional options available. Ask one of our agents about the advantages of purchasing optional endorsements for your HO-6 policy!
How Can Condominium Owners in Massachusetts Obtain Condo Insurance?
When shopping for a Condo policy, condominium owners must fully review their Association's Master Policy and Bylaws. This generally requires time and patience. Understanding what limits and loss types that are, or are not covered, and sifting through technical terms is not an easy task. For help going through this process, contact our Personal Lines agents that understand how to write a comprehensive Condo policy! As a respected independent agency, we can compare coverage and rates from multiple insurance carriers. By providing our agents with your Master Policy and Condominium Association bylaw information, we can deliver you an affordable policy to compliment the Association’s Master policy.