Condominium Insurance

To state the obvious, a condominium is not the same thing as a house. Usually, there’s no backyard or basement, and you don’t have to worry about cutting the grass or shovelling a front walk. Insurance is another area where homes and condos differ. Condo owners are typically responsible for insuring just a portion of their property on their own. However, rules differ from complex to complex, and it’s important to ask the right questions to ensure you have proper insurance coverage.

Owners of condominium units obviously do not own the entire condominium complex. Typically, they own their own unit outright and share ownership of the rest of the complex with all the other owners.
From an insurance point of view, that means all individual unit owners have a collective responsibility for insuring areas of the complex owned in common — building exteriors and hallways, the pool area, etc. A condominium association typically collects monthly dues from unit owners and uses a portion of these funds to insure common areas. Meanwhile, the unit owner typically is responsible for separately insuring everything within the four walls of his or her individual unit. Condominium owners should approach insurance needs from a slightly different perspective compared to owners of single-family homes.