Get the Condo Association Insurance Coverage You Deserve
Condo Owners Master Policy
Condo Insurance Made Simple with State Farm®
A condo owners master policy can insure all the building and common elements under a single package policy.
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A condo owners master policy typically provides coverage in one of three ways:
- Insures the basic building(s) (walls, roof, floors, elevators) but leaves 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 condo association insures the structure, a condo unit master policy is normally written to cover:
- Items not covered by the condo owners master policy that may be your insurance responsibility.
- The value of building additions or alterations made by you, at your expense.
- Value enhancements (For example, if carpet is upgraded to quality that is better than the original, the difference would be covered in the event 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 some instances, the condo owners master policy 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 condo association bylaws and other governing regulations may vary widely. Be certain that your policy covers any potential gaps in the condo owners 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 condo unit master 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
- Accidental discharge or overflow of water
- Riot or civil commotion
- Accidental eruption of hot water heating system
- Vehicle damage
- Smoke damage
- Artificially generated electrical current
- Vandalism or malicious mischief
- Falling objects
Your personal property is covered against these kinds of losses at your residence and at any location worldwide, subject to some restrictions. For example, theft from another residence you own that you are not currently residing at is not covered.
Guests' property would be covered within your unit.
Most basic coverage for property does not include flood or earthquake insurance coverage.
To protect your condo unit against these possibly other unspecified losses, you need special coverage.
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.
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 to learn more.
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.
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.