Condo and co-op owners should first review their association's master insurance policy to find out what that policy covers, and what it doesn't. In most cases, the building insurance policy should cover physical damage and liability for common areas such as the hallways, roof, basement, elevator, boiler and common walkways. Co-ops and condominium associations can also obtain coverage for sewer backups, seepage, floods, earthquakes, employee dishonesty and changes in municipal rules and regulations. For older buildings, another option is liability coverage for claims resulting from exposure to lead-based paint.
In some cases, the building association's insurance policy also covers the standard fixtures in each unit. The condo owner might only be responsible for personal property inside the unit and for any additions or alterations made to the original structure, such as new carpeting. In other situations, the building policy covers only the bare walls, leaving condo owners responsible for insuring anything inside a unit such as cabinets, carpeting and bathroom fixtures.
This information is general information to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contracts of insurance. Please speak to one of our licensed insurance representative and read your policy contract to fully understand your coverages.