When home shopping, many people consider purchasing a condominium instead of a stand-alone house. Sometimes, this is due to the limited space of larger cities. Sometimes, it is due to the convenience of sharing a community with others. However, there is a lot to consider when making such a purchase, especially when it comes to insurance.
What is a Condominium?
A condominium complex is a large property comprised of many units or condos that are owned individually. There is often a board of unit owners that oversees the daily operations of the complex and provides the management of the property. Those running the complex will want to find condo master insurance to protect the interests of everyone in the complex.
Although individuals own their units within the condominium complex, they are still required to assist with the costs of the management of the community. Often, monthly fees are required from each owner to cover the costs of these responsibilities, while the management or board oversees the implementation of those activities.
There are different types of condominiums as well. Some are large buildings with different units within them, similar to apartment buildings. Some condominiums are residential townhouses that are connected. There are even condominium complexes that are commercial and house individually-owned office condos.
Who is Responsible for the Different Aspects of a Condominium Complex?
In general, those who own a condo unit are not owning the building itself, but rather the air space of the unit. The floors, walls, and ceilings that divide these units are considered common property. Owners are responsible for the care and maintenance of the inside of their unit and their personal property within the unit. Owners are also expected to prevent damage to the common areas of their units.
The common areas of the condominium complex are technically owned by the management. The management is often made up of a board of owners within the complex. Although technically managed by the board, each owner has the responsibility to help in the care of these areas. In general, condominium owners pay regular fees to cover the care, maintenance, and insurance for the common area.
What is Condo Insurance?
It is strongly recommended that condo owners carry condo insurance to protect themselves and their investments. If mortgaging the purchase of the unit, a lender may require condo insurance. This type of insurance provides certain coverages that can protect a condo owner in case of an issue.
Most condo owners need to carry personal property coverage. This coverage offers protection for the owner’s personal property. If an incident occurs, this property can be repaired or replaced. Condo owners must also carry personal liability insurance. This coverage provides protection to the owner in the case of an injury or other incidents where someone may bring a claim or suit against the policyholder.
The liability coverage can also protect condo owners in cases where their actions caused damage to the common property of the complex. It may even offer to provide living expenses if the unit is damaged severely making it unlivable.
What is Master Insurance for a Condo?
Master insurance is a type of policy used by the condominium complex to cover all the common areas of the building. Since the condo management is responsible for the care and maintenance of these areas, they are also responsible for any injuries or damages that occur due to improper care or maintenance.
Masters insurance provides coverage for damages to the building or other property that is maintained by the condo association. It also provides liability protection. This coverage protects in instances where someone is injured or their property is damaged while at the complex.
The master insurance can also be beneficial in covering individual unit owners if their property is damaged due to issues that occur from commonly owned aspects of the building. For example, if the building association does not properly maintain its water pipes throughout a building, a pipe break that damages property in a unit may be the responsibility of the building association. Whether owning a unit or part of the building association, it is important that the right condominium insurance is maintained. This protection ensures that incidents are covered without risking bankruptcy to the unit owner or the condominium complex.