Risk & Business Magazine Knight Archer Insurance Fall 2016 | Page 26

RECOGNITION
MATTERS
CONDO
INSURANCE

Understanding Condo Insurance
Are You At Risk?

I

f you own a condominium,
determining your insurance needs
requires a little background research.
Typically, your condo association
has a master policy that insures
all of the property and common areas
that are collectively owned by the unit
owners. But how do you cover the cost of
damage caused by a kitchen fire or theft of
your personal items? Condo insurance is
necessary for the personal belongings in
your condo and any parts of your condo
that aren’t covered under your condo
association’s insurance policy.

When selecting condo coverage, it’s
important to determine what is covered by
your association’s master policy and what
items are your responsibility.
TYPES OF CONDOMINIUM
MASTER POLICIES
Your condominium association has

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likely purchased one of two types of
condominium master policies: a bare wallsin policy or an all-in policy.
The bare walls-in policy is the most
common type of master policy purchased
by condominium associations. This
policy covers all property inside the
structure of the building, excluding your
personal belongings. Fixtures and other
installations in your unit may also be
excluded. This means your hardwood
floors and granite countertops might not
be covered. If the master policy for your
condominium is a bare walls-in policy, it is
crucial that you determine which items are
excluded and obtain your own coverage for
those items.
If your condominium association has
purchased an all-in policy, the fixtures and
installations in your unit are covered, along
with all of the property inside the structure

of the building, excluding your personal
belongings. In this case, you would only be
responsible for obtaining coverage for your
personal belongings.
Ask the following questions to determine
what is included and excluded in your
condominium association’s master policy:
•

Is the master policy a bare walls-in
policy or an all-in policy?

•

Are any fixtures, installations or other
items excluded on the master policy?

MASTER POLICY DEDUCTIBLE
Like any insurance policy, your
condominium’s master policy will have
a deductible. When a claim is filed,
the condominium association will be
responsible for paying the deductible
before coverage kicks in. It’s important
to read your condominium by-laws to
determine your responsibility in the