What Does My Condo Association Insure?

November 06, 2020 by Dan Green

HO-6 condo insurance is walls-in insurance; It’s protection for everything that happens inside your actual condo.

For everything outside of your unit, there’s the homeowners association’s master policy, which offers three levels of insurance coverage — minimal, standard, and extended.

Some of this coverage extends to the fixtures in your unit, which can save you money on your HO-6 policy. So, when you’re buying a condo, have your real estate agent pull the master condo policy first.

There are three main types of coverage offered by a master policy.

Bare Walls Coverage

Bare Walls Coverage is the most limited insurance coverage for a condo building. It’s also the cheapest master condo policy that a homeowners association can purchase.

Bare walls coverage covers the condo building’s structure and infrastructure only. Coverage does not extend into individual condo units.

When your building is insured with bare walls coverage, anything that breaks within your condo’s walls will be your responsibility to have fixed.

Click here for condo insurance rates.

Single entity

Single Entity Coverage is the standard-level insurance coverage for a condo building.

Single entity coverage covers the condo building’s structure and infrastructure; and all original fixtures in all of a building’s units.

When your condo building is insured with single entity coverage, repairs to your shower and plumbing are covered by the homeowners association’s master insurance policy.

Damage to your flooring from a leak is not.

All inclusive

All-inclusive coverage is the maximum level of insurance coverage for a condo building.

All-inclusive coverage covers the condo building’s structure and infrastructure; fixtures and upgrades within a building’s units; and the costs of a complete restoration from major events in the building.

When your condo building is insured with an all-inclusive master condo policy, you can save costs on your personal condo insurance policy.

So much is covered by the association that you only need a small amount of coverage for yourself.

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