Condominium Association Master Insurance Policy

A condominium association master insurance policy is a method of protection for condo owners. Your condominium association master insurance policy is a type of building insurance that protects the condominium or other structure as a whole. If you own a condominium, complex unit or any other apartment type dwelling, then you will become part of the condo association when you buy into the unit or when you start paying the mortgage.

When it comes to reviewing your condominium association master insurance policy you will probably see a lot of clauses and phrases that you may not be familiar with. It is important to read through the fine print and get a clear grasp of what insurance you have and what is not included on your plan in order to know what additional coverage you may need to purchase for your house.

Review your Master Policy

One of the things to review and compare when looking at your condominium association master insurance policy is the replacement cost to the building and whether it carries building defects coverage. You need to think about when the building was made, the square footage, the number of stories and the other features of the complex as well as any hazards or dangers it may pose. For example, an older building built out of timber may not be able to withstand the pressure of a hurricane or tornado in the same way a concrete new building can. A building on the waterfront is at a much higher risk for hazard flood damage or storm surges than a building on the top of a hill or inland. As the years go by so will the value of the building so this should be updated to reflect any changes on a yearly basis, especially if the building can undergone renovations at all.

Another thing to consider when looking over your condominium association master insurance policy is what type of coverage is actually included in the plan. All condo association master policies will vary. Most will include compensation in the event of damage to the structure of the complex as a whole. This includes damages from common perils such as theft and vandalism as well as natural disasters. Check to see what disasters are actually covered. Some include sewer or drain back up cover; some include flood and earthquake cover; some include wind cover, but many do not so be sure to see what is included when determining what additional insurance you may need.

Condo Association Master Plan Premiums

Your condominium association master insurance policy premium will vary depending on the agent and where you are living. It is possible to shop around and find a better deal. You can switch agents if you are unhappy with your master policy and look for better deals elsewhere.

In addition to comparing your options when it comes to HOA insurance, you can also opt for a higher deductible to help lower the rate on your condominium association master insurance policy. A deductible that is as high as $1000 to $2500 will substantially lower your annual premium. However, it is important to remember that you need pay this amount if you ever need to make a claim.

Best Deals on Condo Insurance

Your condominium association master insurance policy may also be referred to as an HOA policy, or homeowner’s association policy. It is important to not only review the master policy but also determine if you need additional coverage on top of the master plan. In most cases, you will.

The easiest way to get the best HOA coverage and additional coverage is through an online search where you will have instant access to condo association policies as well as additional coverage options for landlords and condo owners. This may include contents protection for the belongings inside your home as well as rental protection if you are using your condominium as a rental investment.

If you are using your condo as a rental property then the tenant will probably need to purchase additional ‘renters’ insurance which includes contents protection as well as liability coverage in the event of a serious injury inside the building. Your condo association liability coverage will pay for legal action in the event that someone is seriously injured in the common areas but it does not usually include inside each individual unit. As the condominium owner (or condo renters), you need to add this important coverage to your policy.

Buying a condominium for investment purposes or for living purposes is an exciting thing. However, like any large purchase there is a lot of paperwork involved. One of the biggest things to remember is to review your condominium association master insurance policy to get the best deals as well as the confidence that your financial future and your condominium are fully protected.