If you’re planning to purchase a condo in the near future, you’ve probably heard that you’ll be paying for two insurance policies – one for your personal condo and one through the Homeowners Association (HOA). It’s important to understand the difference between these policies so that you know which one to choose if you need to make a claim.
What is the Condo HOA Insurance Policy?
When you pay into a master insurance policy, you pay for coverage for any shared spaces between the condos. This includes spaces like the external part of the condo building, parking lots, lobbies, and any other spaces that condo owners share.
Depending on the cost of the shared HOA insurance policy, each condo owner has to pay a certain portion of the policy as part of a monthly, quarterly, or annual fee. If an incident occurs on shared property, or there is damage to the external part of the building that is shared with other condo owners, then you should use this policy.
What is the Condo Personal Insurance Policy?
This policy is meant to protect your personal condo, the space behind your door that is yours alone. Anything that isn’t shared and is your responsibility and your property is covered under this policy. This means that anything you own inside here, such as the following, is protected in the event of damage:
- Furniture
- Equipment
- Appliances
- Jewelry
If an accident happens inside your space when you have guests over, you would need to make a claim on your personal condo insurance policy.
If you would like more information on a personal quote for condo insurance, our team at Anchor Insurance Agency LLP would like to help. We proudly serve clients in and around the Plymouth, MN area.
