Condominium owners are presented with a unique situation when it comes to insuring their home.  Part of the coverage is provided from a policy purchased by the Condominium Association called a Master Policy.  The Condominium Association’s By-laws and Master Deed spell out specific guidelines that must be followed when obtaining this coverage.

Condominium Owners should also purchase an individual Unit-Owners Policy (FORM HO-6).  These policies are similar to traditional homeowner policies but have been tailored to meet the needs of a condominium unit owner.  The policy works in conjunction with the Master Policy to provide a full package of coverage.

The principle element of the Unit Owners policy is coverage for the owner’s Personal Property (Coverage C).  The limit that you choose should accurately reflect the total value of all of your personal belongings.

Condominium policies also provide coverage for Personal Liability and Medical Payments.  In addition, options such as special coverage for valuable articles like jewelry, art or furs can easily be included.

Renters/Tenant Insurance

Tenants should obtain insurance coverage through the purchase of a special policy designed to protect personal belongings.  This policy provides coverage up to a specified amount for your personal property (clothing, furniture, household appliances etc.) for many perils including fire, smoke and theft.

As a tenant, you should make sure that you have enough insurance to cover all losses to your property.  To help determine your insurance needs, it is recommended that you take a household inventory.  This will not only help you in arriving at an appropriate amount to insure, but will also assist you in making a claim in the event of a loss.

Replacement Cost

Since the basic policy only covers actual cash value (the cost to replace an item minus depreciation due to age and use), it is recommended to include Replacement Cost Coverage for Contents which insures your belongings for the current cost to replace them.

Personal Liability Insurance

Personal Liability insurance provides medical coverage for claims made against you by someone either unintentionally injured on your premises or accidentally hurt by a member of your family.  If the person is injured or his property is damaged because of negligence by you or a family member, personal liability insurance will also pay for your legal defense and any resulting court judgment against you (up to the limit stated on your policy).