Condominiums are no small property; they come with large areas made for the residents to enjoy besides their units. The owners may decide to add a few extras as well. All of these and the physical structure may suffer damage or destruction in case of a calamity.
The right condo master insurance will account for all that needs to be covered on the premises. While that is the assumption that insurance buyers have while purchasing a condo master policy, the reality is that there are coverage clauses and omissions in them that need to be carefully examined.
Knowing the Coverage Umbrella
The condo master insurance of your choice will detail what you will gain from that policy. Doing thorough research of options available and reading the fine print of each of them will get you the most from that policy. Asking around will also get you some knowledge that you might miss otherwise.
Physical Property Coverage
- Bare Walls-In: This type of coverage only handles damages to the walls, ceiling, and floors of the structure. It does not include any furniture and other equipment that might be present in those spaces. It is only concerned with exterior aspects, including pipes, insulation, roof tiles, etc.
- Single Entity: This type of coverage accounts for all of the items covered in the bare walls-in type, plus some interior components such as furniture of single units. It covers only the standard furniture of those units and not any upgrades they might have undergone/ will undergo.
- All-In: This type will cover everything that needs coverage, including the additional fixtures and installations made to its walls, floors, and ceiling. It also tends to cover any pre-installed appliances and equipment that comes with each unit, plus upgrades made by the unit’s owner.
The All-In policy mentioned above also sometimes comes with liability coverage against potential lawsuits. They can help association members and owners of property with expenditures arising from those lawsuits. Employee/tenant origin lawsuits can also be protected against.
Commercial Property Coverage
A business personal property insurance coverage can be added to account for losses that will occur to the business owner’s personal belongings due to the structural damages. It can also protect against employee misdemeanor.
The building insurance will cover the building as a business property, including any installed equipment, fixtures, machinery, etc. There’s also the Inland Marine Insurance that protects movable properties, in-transit ones, or others under your supervision. It could also consider the contractor’s equipment used for the process.
Common Liability Coverage
- Medical: This covers bodily harm that arises due to building parts falling on occupants during a disaster. Medical payments due to accidents resulting in the premises can also be covered irrespective of the insured’s liability.
- Fire: Fire related damages to property and its occupants can be claimed if it resulted from the insurer’s neglect.
- Management Members Protection: Protects high-level directors and officials against claims made by employees, clients, and stockholders.
- General: This protects the insured against the liabilities of those mentioned above and any legal and financial ones that may occur. Your defense against those can also be covered.
- Commercial Umbrella: This works when any other externalities are to be accounted for besides the above coverage.
Other Enhancements and Additions
Other options for protection in condo master insurance include Water and Sewerage for damages due to issues related to those, Flood and Earthquake protection, compliance with local Law and Ordinance during reconstruction, Business Income, and Added Expense protection to cover for business income loss due to damage and other related expenses, additional Electrical Equipment Breakdown protection for gadgets and other electrical components. These can be opted for over the regular policy coverage.
Covering a condo with master insurance will be an essential step towards protecting it and yourself against many eventualities. It’s thus imperative that you know how you are protected.