Condos offer the benefit of homeownership with some of the convenient amenities usually reserved for renters. Yet, with ownership comes financial responsibilities and risks. Condo insurance coverage is designed to provide peace of mind in matters of uncertainty. Here's a closer look at what you need to know. 

A Guide to Condo Insurance Coverage

Is a master policy enough? 

When you buy a condo, you purchase a unit within a larger structure. While you're responsible for your specific space, there's typically a condo owners association (COA) that handles the needs of shared spaces and the overall building. 

Part of the annual COA fees for each owner goes toward paying for a master insurance policy, if available, which covers the building itself. It may extend to walls, elevators, and shared gyms, but it doesn't include most aspects of the condos themselves. As such, an individual unit plan is necessary to protect your space. 


What does a unit plan cover?

Condo insurance is a mix of homeowners and renters insurance. While each policy varies, they typically cover personal property within the home, such as electronics, as well as personal liability for injury or property damage experienced in the condo or by a unit resident, like your pet or child. 

The plan may also extend to various aspects of the unit itself, like appliances, flooring, and built-in cabinets. Such coverage is dependent on the master plan of the building. Review those protection points first so that you can tailor your personal condo plan to compensate for what's not included. 

Is it required?

Many COA require buyers to carry and maintain adequate insurance as part of the rules of ownership. Failing to do so may result in fines or even legal action. Even if the requirement isn't included in the covenants, lenders often require mortgage borrowers to carry coverage. 

How are premiums determined? 

There are a variety of factors used to calculate rates. Providers often consider the various features of the condominium to determine potential claim risks, such as age, security, and sprinkler systems. The coverage amount required for personal property is another factor, along with the deductible, as higher upfront costs usually result in lower monthly rates.


Keep your investment protected by reaching out to Baldwin Mutual Insurance Company in Foley, AL. Both renters and property owners across Greater Baldwin County rely on the local insurance company for dependable, convenient, and cost-effective coverage solutions. Browse their range of policy options online, and request a condo or home insurance quote today at (877) 943-8526.