Condo policies are one of the most miswritten policies in the business.
Condominiums are typically covered by a master policy that takes care of the building, common areas and out buildings. Your Condo Documents spells out what you are responsible to insure for yourself. Your condo policy will follow the dictates in the condo documents.
Sometimes it says you are responsible from the studs in. Typically, the Master policy will cover the drywall including taping.
Make sure the dwelling coverage is covered on a replacement cost basis!
This is a small increase in premium but you do not want to have actual cash value settlement on the dwelling coverage. Actual Cash Value means the company will depreciate the damages based on the effective age of the materials.
You will need to add personal property to cover anything not nailed down. This includes items such as, but not limited to: clothing, furniture, appliances not permanently installed. Pots and Pans, dishes, silverware, TV’s and so on will be covered under personal property. You’ll want to make sure your personal property is covered on a replacement cost basis as well.
Loss assessment coverage is insurance that pays for certain uncovered losses that the master policy did not cover. Typically the Master policy will have a large deductible. Many times due to a race to the lowest cost when the Master policy is issued there are insufficient limits to pay a loss. The association will then access each unit owner their “share” of the uncovered loss.
Certain items such as Jewelry, Watches, furs, fire arms, Fine Arts and other items have limited coverage and can be scheduled for a small fee.