Condo Insurance is a form of homeowners insurance looking very much like a Renters policy. Condo owners know (or should know) that they are responsible for protecting their personal belongings, just like the renter of an apartment. Unlike Renter's Insurance the condo policy does offer coverage for the dwelling. Determining how much coverage the condo owner needs on the dwelling is the tricky part.
The reason for this is that there are potentially two policies providing insurance for the building. First is the Association's master policy. It will be providing some coverage on the dwelling. The question is, on what? The master policy will follow the Association's by-laws and by-laws can be written in a number of different ways. We have seen by-laws where the Association is responsible for everything but the condo owner's personal belongings. We have also seen by-laws where the Association is only responsible for the studs out, leaving the condo owner responsible for the dry walls, wall coverings, floors, rugs, cabinets, etc. Of course, we have also seen everything in between. Condo owners need to understand what their insurance responsibilities are under the by-laws. This may even require the assistance of an attorney.
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