Fact or Fiction? The Master Condo policy purchased by my condo association will cover any damages to my unit.  

While only partially true, most Master Condo policies only provide general liability and property coverage for the commercial building that houses your condo. However, if your association’s Master Condo policy includes a special endorsement called “All-in” or “All inclusive” coverage, your individual unit and the building items within your condo, including fixtures and any structural improvements or additions you’ve made as the owner may be covered. This additional coverage may also help to cover the cost of repairing your unit to the condition it was in prior to a covered loss. While “All-in” coverage will go to work for you, it is our recommendation that you purchase a separate insurance policy that covers your personal property as well as the Master Condo building deductible, which is often very steep.

For individuals or families who are thinking about purchasing a condo, it is important to have your insurance agent review your association’s specific policy up front, instead of assuming it provides the coverage you’d expect. In addition, without “All-in” coverage, your mortgage lender may require you to provide coverage up to 25% of the value of your unit, which can cost as much as $500 per year. This additional expense will be important to budget for as you navigate the homebuying process.