When someone purchases a condominium they own everything inside of the condominium. The property the building is on and the outside of the building belong to the condominium association. The part that is owned including the outer walls, and roof are insured by the condominium association. The owner of the condo is responsible for insuring the plumbing, appliances, and anything else that is in the interior of the home. Typical homeowners insurance would be too much for such a living situation. Typical renters insurance may be too little for this living situation. This is why condo insurance exists. It provides the proper protection for those that live in and own condos.
Condominium insurance is very similar to renters insurance in that it does not cover the home in the way that homeowners insurance covers the entire structure. It does provide a little bit more insurance than renters insurance. Condo owners often need to purchase further protection on their insurance policies to ensure that everything that is not covered under their associations insurance policy. The key for any condo owner to determine the amount of coverage that they need is to fully understand what it is their association covers.
There are two types of coverage provided by condominium associations. They are single unit and bare walls. Single unit covers the outer structure of the condominium and certain items inside the condo. Single unit coverage may cover certain appliances, plumbing, cabinetry, and even the flooring. Bare walls coverage simply covers the outer structure of the unit and leaves the owner responsible for anything inside the condo.
It is important for any condo owner to understand exactly what their associations policy covers in order to determine the exact amount of coverage they will need for their home. It is important to cover anything in the home that is not covered by the condominium association. There are even instances where the owner may not be satisfied with the amount of coverage provided on certain aspects of their home like the plumbing and may want to supplement that coverage with further condo insurance. The best way to determine the exact amount of coverage needed is for a condo owner to go over the associations policy with an insurance agent in their area that provides condominium insurance.