Becoming a residential property owner certainly has its appeal, but why is becoming a condo owner such an attractive thought? Unlike owning a single-family home, a condo owner is not solely responsible for maintaining every piece of the property—the yard, the pool, the structure of the building, and the interior. Typically, the condo association oversees the management of building maintenance and other shared spaces on its property, giving the unit owner a chance to breathe.
This idea, however, is not to be mistaken with a lack of responsibility. An example? Insurance. A condo association is required by law to have a master policy, but this does not protect the interior of the unit.
What is a Condo Master Policy and What Does it Cover?
Your associations policy will typically include a couple types of coverage: liability protection and property coverage. Liability protection will aid the association in covering legal or medical costs if they’re hit with a lawsuit. For example, if someone slips and falls in a common area. Property coverage typically covers ONLY common areas of the building that are shared between residents. For example, the roof, elevator, courtyards, etc.
It is critical to note that the association’s policy may not extend to the interior of your condo; the specifics vary from state-to-state and policy-to-policy, so be sure to read your associations bylaws to learn what parts of your home are covered by the master insurance policy.