When purchasing Condo Insurance in Massachusetts, it is important to take into consideration the Master Condo Insurance Policy, if there is one. A master policy typically provides liability and building coverage for the general structure of the condo complex, including any surrounding property and facilities on the premises. What this means is that if someone were to get injured in a common area, for example the parking lot or tennis court, the condo association’s master policy would typically cover the resulting liability claim or damage to the building or area.
So to answer the question… Do I need Condo Insurance when there is a Master Policy? The answer is Yes, if you want to be sure you are really covered. Whether or not the condo association carries a master policy, it is important for the unit owner to understand that personal property and personal liability require a personal condo insurance policy. Other coverages to consider include personal liability coverage, personal property coverage, loss assessment coverage, unit owner betterment and improvements coverage, master policy deductible coverable, just to mention a few.
- Personal Liability Coverage can offer financial protection for actions by the unit owner that may harm others, including other unit owners and guests in the condominium.
- Personal Property Coverage can offer coverage for everything in the condo, from jewelry and electronics to clothing and furnishings.
- Loss Assessment Coverage can offer coverage for losses which are not fully covered by the master policy. For example if the building and commonly shared areas are destroyed by an insured disaster and the losses are not fully covered by the master policy, your association may assess a certain amount to all unit owners to cover the loss. Your condominium unit owners policy’s loss assessment coverage would help pay for your share of these assessments.
- Unit Owner Betterment and Improvements Coverage can offer coverage for improvements and alterations, for example, installing new cupboards, carpet, ceramic tile or fixtures.
- Master Policy Deductible Coverage can offer coverage for damage to your unit not compensated because of the master policy deductible.
- Just to mention a few…
Keep in mind that in some instances, typically smaller buildings with 2 or 3 units, some condo associations do not have a master insurance policy at all. But even for those associations that do carry a master policy, every condo association in Massachusetts is different. And while condo owners are typically responsible for just a portion of their property, rules differ from complex to complex on what is actually insured by the association and what falls upon the unit owner. Therefore, it is import to review the bylaws when purchasing condo insurance in order to be sure you are really covered.