A condo master insurance policy protects your condo association from being held liable for personal injuries or property damages on the exterior of your building or the common areas within it.

Also, coverage levels extend some protections to the interior of the units themselves.

A condo master insurance policy covers:

A) The condo structure

B) The grounds around the condos

C) The common areas

Let’s take a look at each of these in greater detail.

The Condo Structure

As with any insurance coverage, policyholders can make a few distinctions when deciding on their plan. For example, regarding the condo structure, association members can choose between three main types of coverage.

Bare Walls-In Coverage

First, there’s “Bare Walls-In” or “Studs-Out” coverage. This policy focuses on the condo’s actual physical structure. This includes only the materials required to construct and uphold the units, including the following:

A) Exterior

B) Framing

C) Roofing

D) Piping

E) Wiring

F) Insulation

G) Drywall

While this list might look exhaustive, it’s actually the most minimal.

A Bare Walls-In policy does not cover anything inside of the unit itself. Instead, it protects the building’s exterior and any shared spaces inside. This means it kicks in if the roof has hail damage, the elevators stop working, an accident in the main lobby, or a similar situation occurs.

In turn, each owner is responsible for seeking additional coverage to help protect the structural elements inside their units.

All-In Coverage

As an alternative, board members can select an “All-In” policy. This policy includes all of the materials listed above. It also covers the structural elements and fixtures associated with each unit. In most cases, it will also include built-in appliances and any upgrades or improvements the owners make to their units.

Unit owners protected by an all-in master policy will likely require less individual coverage against property damage because the only property they’re directly responsible for is their personal belongings.

The Grounds

In addition to the condo structures, a master insurance policy will also cover any injury or damage on the shared grounds associated with the property. This includes grassy areas, playgrounds, parks, walking trails, and similar spaces.

The property grounds also include parking lots, sidewalks, and walkways.

Common Areas

In most condos, there are common areas that the residents of the individual units share. Depending on the size of the property and the level of amenities it offers, these can include:

A) Pools

B) Hot tubs

C) Fitness centers

D) Gyms

E) Event spaces

F) The master office

G) The clubhouse

Most master policies are built to cover both limited common areas as well as general common areas.

Are you looking for a condo master insurance policy to help cover the units your board manages or maintains?

If so, we’d love to help. Let’s connect and take this next step together!