For millions, the decision to invest in a condo makes perfect sense. This housing option gives you the best of both worlds. You also have two insurance policies working to protect your home… The HOA’s Master Insurance Policy and your personal Condo Insurance Policy.
The HOA typically covers insuring all exterior structures. However, this can vary from one HOA to another. Don’t assume that they cover everything. You’ll find all these details in your community’s master policy.
It important for you, as a condo owner, to have a complete understanding of all that’s entailed in your condo insurance. This coverage protects you from certain losses in the event of unforeseen circumstances. However, it only covers specific hazards that will be identified in your agreement. It can be somewhat confusing, so ask your insurance agent questions to gain a full understanding.
So here are two important exercises to ensure peace of mind.
1) Ask to review a copy of your HOA’s Master Insurance Agreement.
2) Ask your insurance agent to review it and advise you of any loopholes