Condominium Unit Owners Insurance made simple

The Condominium / Association Master Policy

Because it can be more efficient or economical, your association may insure all the building and common elements under a single package policy, commonly called an association master policy.

The three typical ways to provide coverage, all through an association policy:

·         Insures the basic building(s) (walls, roof, floors, elevators) but leaves to you the responsibility of insuring appliances, carpeting, cabinets, wall coverings, and other items in your unit, and in some instances the interior walls.

·         Insures both the basic building(s) and the items within your unit other than personal property.

·         Insures both basic building(s) and includes unit owner fixtures and improvements.

When the condominium/association insures the structure, a unit owner policy is normally written to cover the unit owner for:

·         Items not covered by the association master policy that may be your insurance responsibility.

·         The value of building additions or alterations made by you, at your expense.

·         Value added (If you've put in a better quality carpet than was originally there, for example, this coverage would make up the difference in case of loss).

·         Damage to your unit not compensated because of the master policy deductible.

Building coverage is one of the more complex parts of insuring an association. You should discuss your needs fully with your State Farm® agent.

In other instances, the condominium/association does not insure the structure. In this situation, a homeowner's policy would be written for the unit owner, just as it would be for an insured person with a conventional home.

Remember, however, that conditions in condominium/ association bylaws and other governing regulations may vary widely. Be certain that your policy covers any potential gaps in the condominium/ association master policy.

Your Personal Property Coverage

Because you have a large investment in your personal property, you need enough coverage to compensate you if you suffer a covered loss.

Your condominium unit owners policy will protect your personal property against loss or damage from a number of specified causes, such as:

·         Fire or lightning

·         Weight of ice, snow or sleet

·         Windstorm or hail

·         Theft

·         Accidental discharge or overflow of water

·         Explosion

·         Riot or civil commotion

·         Accidental eruption of hot water heating system

·         Aircraft

·         Vehicle damage

·         Freezing

·         Smoke damage

·         Artificially generated electrical current

·         Vandalism or malicious mischief

·         Falling objects

Your personal property is covered against these kinds of losses both at your residence and any other location worldwide, subject to some restrictions. For example, theft from another residence you own, if you are not temporarily residing there at the time, is not covered.

Guests' property would be covered within your unit.

Most basic coverage for property does not include flood or earthquake insurance coverage. Learn more what's not covered.

To protect your condominium unit against these possibly other unspecified losses, you needspecial coverage.

Deductibles

Your policy will include a deductible -- the amount of a covered loss for which you are responsible.

With a $500 deductible, for example, $500 is the portion of a covered loss for which you are responsible. Higher deductibles such as $1,000 or more are also available.

By increasing your deductible, you can lower your premium but you also increase the amount of a covered loss for which you are responsible. When choosing a deductible, you must decide how much of a covered loss you would be willing and able to bear in order to save premium.

Be certain you have adequate coverage. Complete an inventory of your possessions and their purchase date and price.

See an example of a condominium personal property appraisal.

Free Home Property Organizer

Put your inventory listing in a safe place outside your home. Photographs or video will supplement your inventory. To speed up your claim settlement if you have a covered loss, save receipts for major purchases. Use our home property organizer

Check to make sure your policy has an inflation-guard feature -- one that automatically increases coverage for belongings.

If you work from home

If you operate an office or small business in your home, you may need special coverage. Check with your agent if you have a home business. This will help make sure that you have the right kind of coverage.

What coverages are available?

This content is only a general description of coverages and is not a statement of contract. All coverages are subject to the terms, provisions, exclusions and conditions in the policy itself and any endorsements.