Condo InsuranceIf you have purchased a condominium, the bank will require insurance to protect its investment in your home. You may, however, need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building like the lobby.
Two separate policies are necessary to protect your investment.
First, you should purchase your own homeowner's (condo) policy. This will provide you with insurance coverage for your furniture, personal property (possessions), structural improvements to your condo and any additional living expenses you may incur should your condo become uninhabitable as a result of a covered peril.
The second policy or Master policy is typically purchased by the condo association to protect the “common areas”, such as walls, roofs, basements, elevators, pools and walkways. The Master policy offers both liability and physical damage coverage.
Basics of Condominium Insurance