Real Estate & Household

What Does A Condo Master Insurance Policy Cover?

Home insurance is always a good idea for homeowners because you never know what may happen in the future. If there is a serious incident within the property, such as a plumbing issue, damage from exterior influences, or theft, you need that coverage to ease the strain.

The same goes for condo owners. However, there is another policy that is essential for condo buildings – the condo master insurance policy. So, what does this policy cover, and how could it help in an emergency?

Simply put, the condor master insurance policy helps condo owners enhance their coverage by adding protection across the building. One of the perks of being a condo owner is the chance to enjoy an array of amenities and shared spaces within the complex. This policy means you can do so with even greater peace of mind.

Shared Areas Covered By Condo Master Insurance

The term shared area is actually pretty broad, which means that condo owners can enjoy the benefits of a condo master insurance policy in more ways than they might expect. If an incident occurs in one of the following areas, and that area is fully part of the complex and not a public space, it may be possible to claim on the insurance policy. Also, some areas are classed as limited common areas that should also be included in the policy. A limited common area is somewhere that isn’t accessible to everyone but is shared by two or more condo owners.

Lobbies

The first shared area that people will see in a condo building is the lobby. It has to be accessible, appealing, and safe to use at all times. But, it is also at risk of damage from neglect, flooding, criminal damage, and more. Master insurance can help.

Mail Room

Some condo buildings will have mailboxes in the lobby, while others go for a separate mail room for convenience. A disaster here could destroy valuable mail and leave residents with nowhere to securely receive packages. It’s also a target for thieves. Effective coverage goes a long way.

Stairwells and elevators

Any form of access point between floors or buildings should also be in the policy. These are some of the most used spaces of all and need to be in good condition. Elevators are also essential for disabled access, so they must be maintained and covered if anything goes wrong.

Balcony and terrace spaces

These areas are good examples of those limited shared spaces. There may be roof terraces that are open to everyone in the building. Or, there may be separated areas accessible by certain blocks of residents only. This may be a perk of choosing a specific building. Some larger balcony areas may also have shared access, making them eligible for coverage.

Pools

Insurance coverage here is important here, more for the coverage against accidents than anything else. Residents deserve to be in a safe, well-maintained space where they can welcome guests without worrying about their safety.

Gyms/Fitness Centres

The same goes for any fitness areas and saunas where people could injure themselves. The high cost of the equipment also means you want a good coverage policy in case of serious damage.

Conference Rooms

Business areas and meeting spaces are helpful facilities for workers who need to do some last-minute projects but don’t want colleagues in the condo. They are also essential for condo board meetings. Insure them in case of damage.

Entertainment spaces

Entertainment spaces, such as games rooms and screening rooms, are also covered. This can be a relief if there’s any high-value equipment in there that thieves may target.

Outdoor communal spaces

The most comprehensive plans for condo master insurance should also cover outdoor areas. These include the fire pits, decking areas, and more that aren’t public spaces but are shared by all the condo owners.

Gardens and walking trails

Finally, depending on the scale of the property, it might be worth adding coverage for the wider exterior property. You don’t want to deal with the costs of weather damage in communal gardens or any lawsuits if people trip on the paving.

What Events Can You Claim For?

With so many different areas covered by this condo master insurance policy, condo owners must know what they can claim. Several types of accidents or forms of damage could leave policyholders open to compensation.

As with the home insurance policies, you’re looking at protection in the event of fire, flood, criminal damage, theft, and serious weather events. The policies also act as vital protection for the condo board if anyone is injured in one of these spaces.

For example, guests staying with a condo owner may slip into an outdoor space or suffer an injury in a fitness center. They may choose to sue the association if they feel this was due to poor maintenance or standards.

Are There Any Limitations?

There are limitations to condo master insurance. The most significant is that the policy only refers to expenses and damage relating to those shared spaces. Anything that happens in a privately owned space is the responsibility of that condo owner.

That’s why it’s so important for condo owners to have their own policies while also enjoying the benefits of master insurance. There’s also the fact that these master policies will have an upper limit for payments.

So, if there is a serious disaster in a residential block, such as wide-scale fire damage or flooding, the cost of repairs may exceed the maximum coverage. In that case, it’s up to the condo board to determine how to share the remainder of the costs or raise extra funds.

Get The Right Policy For Your Condo Building

All condo owners deserve to live in a building with complete coverage for all these shared spaces, whatever the future holds. Those in charge of the condo board and its financial responsibilities should make sure they have a strong condo master insurance policy that works for everyone. Go over the terms, make updates as needed, and keep everyone as safe as possible.

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