Insurance should probably be one of your primary concerns if you are in the market for a condominium unit. Much like homeowner's insurance, condo insurance coverage is designed to protect an owner from property damage and from liability issues. However, the insurance needs for a condo do differ from those for a single-family house.
Think of a condo as an apartment that is owned rather than rented, since you have access to common areas, such as walkways, gardens, playgrounds, and trails. With a condo your ownership is confined to the interior of the unit you have purchased, so for this reason, your insurance requirements are limited to covering the contents in that interior space as well as your liability.
The rest of the condo complex is insured under a master policy, which is held by the condominium association. You're paying indirectly for that condo insurance coverage via the fees you pay to the association, but your personal policy doesn't need to cover areas outside your unit.
Property damage insurance offers protection to individuals
The primary type of condo insurance needed is property damage, which covers certain perils that might cause damage to your unit. A fire, lightning or hurricane damage, for example, could destroy the entire interior of your unit, so insurance is necessary. However, there are also certain exclusions under the policy that require additional insurance. Floodwater damage, for example, is not covered under basic property damage insurance.
Personal liability protects you when others get injured
If a friend or relative comes for a visit, slips on your kitchen floor, and breaks their leg and decides to sue you for negligence, personal liability insurance will cover any damages that must be paid out as well as your legal defense until the coverage is exhausted, which is why it is important to protect yourself from claims made against you.
Contents coverage for your valuables and belongings
A contents coverage policy is designed to protect such items as furniture, appliances, electronics, etc. (jewelry and other collectibles are insured up to a specific amount and should be scheduled and appraised for additional coverage). There are limits to contents coverage on your insurance policy, so make sure you purchase additional coverage for any valuable items that exceed these limits.
“Loss of use” is the final piece of the puzzle
If your condo is destroyed in a storm and you have to find somewhere else to live, even temporarily, until the damage can be repaired, then loss of use Massachusetts condo insurance coverage is available for this situation. It can also pay for other needs like property storage. There are different coverages for all aspects of your personal needs.