Condo Owners Insurance

Examples of Condominium Losses

We’ve seen it all, and it can get very costly for a condominium owner, especially in the litigious society that we live in here in California.

• Flooding out your neighbors unit (definitely a problem if you are on the 2nd floor).
• Starting a fire that burns your unit and causes smoke damage to other units.
• Being assessed monies for the association’s master policy insurance deductibles.
• Being assessed monies for claims that exceed the association’s liability coverage.

What Are You Responsible For?

Most often, the individual unit owner is personally responsible for insuring everything within the exterior walls of their own unit (although, we insure some condo owners that are responsible for insuring the entire dwelling that they reside in).

Quite often, condo owners don’t really have the desire to dig through all of their association paperwork (can’t say we blame them – it’s not too exciting). We understand how you feel (you’re not alone) and our goal is to make this as easy on you as possible. There are some general “rules of thumb” that we can base our assumptions on to get you the insurance policy that you need, quickly. Later on, when the dust settles, we are available to work together to fine tune your insurance program. We’re here to help you through this process.

What Does Your Association’s Master Policy Cover?

Condo owners typically own their individual unit, and share the ownership of the rest of the complex with all the other owners in the complex. So, the individual owners have a collective responsibility to insure the parts of the complex that they own in common (building exteriors, hallways, walkways, pool, and parking areas). Typically, your association collects monthly dues and uses a portion of these dues to insure these common areas.

Your condo association’s master insurance policy along with your association’s rules (CC&Rs – Covenants, Conditions and Restrictions) will make it clear what is covered by the master insurance policy, what is not covered, and what you’re responsible to insure on your own.