Whether purchasing a condominium for personal use or as an investment for potential rental income, insurance is necessary to protect owners and cover what the association does not. The association is responsible for damages to the buildings within a community. This includes everything up to the interior side of the individual units and excludes an owner’s furniture and personal items that would be covered under their own condominium insurance policy.
Each association has its own set of bylaws which outline what is covered and who is in charge of repairing and replacing windows, doors and floors as well as appliances within the residence. Any additions or changes to the unit can be insured under the owner’s insurance. The association’s policy normally does not cover loss such as a fire or if your residence becomes uninhabitable.
Personal liability is offered as part of an individual plan as protection against suits in the case of bodily injury or property damage within a unit, while the association covers its owners from claims arising from the common areas. A condominium owner’s policy is meant to complement the one from the association without creating a duplication in coverage.