Condos are terrific properties with elegant floor plans, and many buyers use them as year-round homes or just for vacations. Regardless of how an owner uses the property, they must purchase a master policy, pay dues to a condo owners association, and buy a separate condo insurance policy. New condo owners may not know everything about protecting their homes and are encouraged to talk to an insurance agent about how a master insurance policy protects the building.
What is the Master Policy?
A master condo policy is required for all condo owners who live in a condo community, and the policy is designed to provide protection for the property’s exterior and spaces used by all residents and their guests. Any events that cause property damage or liabilities are covered by these policies. The condo management company oversees all claims for these policies, and condo owners must inform the management company or condo owners association when damage or accidents happen on the property. Speak to an agent at Garrity Insurance and find out more about master policies.
How Do Condo Owners Manage the Master Policy?
All condo owners pay dues each month to cover the premiums of these master policies, and everyone who lives in the community is required to pay their portion of these premiums. Property managers collect these dues from the condo owners and set up repairs when property damage happens. If someone is injured on the property, the property manager or COA director calls for emergency services and starts an insurance claim to cover medical expenses for the victim.
What Does the Policy Cover?
The foundation, exterior walls, sidewalks, swimming pools, clubhouses, and patios are all included in the master condo policy. Once damage happens, the COA or property manager starts a claim to cover the cost of repairs. These are areas that are accessible to all condo owners and tenants in the community, and the master policy extends coverage for everyone.
What is Not Included in the Master Policy?
Any spaces inside the condo are not covered by the master policy, and the condo owner’s belongings and other items in the property are also excluded from the policy. If a natural disaster happens, all exterior features of the condo and communal areas are covered. The condo owner must purchase a separate condo policy to cover flooding inside the condo.
Personal belongings that are damaged because of flooding and services required to extract the water aren’t covered under the master policy. The owner has to file a claim through a condo policy to recoup their losses, and anyone renting a condo must purchase renter’s insurance to get coverage.
When Are Condo Owners Required to Purchase Master Policies?
Condo owners are only required to purchase a master policy if their property is part a condo community. If the owner has their own private lot that isn’t on a condo community’s property, the condo owner isn’t required to be included in a master policy.
Condos are constructed in communities or on private lots. Buyers who purchase a condo in a community are required to pay dues for using communal areas and pay their share of a master insurance policy. These policies cover the exterior areas of the property and communal areas used by all owners and tenants renting condos. Talk to an insurance agent to learn more about these policies.
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