Master Policy vs. Individual Unit Coverage for Condo Insurance

Understanding Condo Insurance Levels for Optimal Protection

Condo insurance plays a vital role in protecting your investment and personal belongings in a condominium unit in Detroit, MI. However, the different types of condo insurance, namely master policy and individual unit coverage, require understanding to ensure optimum protection.

Master Policy Coverage: What Does It Entail?

The condominium association typically purchases a master policy to cover common areas such as the building structure, hallways, elevators, and shared amenities. This policy caters for damage to the building’s exterior and liability for accidents in common areas but usually doesn’t extend to individual units or the personal belongings of unit owners.

The Importance of Individual Unit Coverage

Individual unit owners must purchase individual unit coverage, or HO-6 insurance, to secure their personal property and liability. This vital policy covers damage to the interior of the unit, fixtures, appliances, and personal belongings. It also provides liability protection should someone sustain injuries within the unit or the owner be found responsible for damaging another unit.

Identifying and Bridging Coverage Gaps

While the master policy caters to damage in the common areas, it may leave coverage gaps concerning individual condo units. Let’s consider a scenario involving a burst pipe causing water damage to a unit interior; the master policy may cover the building structure repairs but not damages to the unit interior or personal belongings. Therefore, individual unit coverage remains crucial for bridging these gaps and providing comprehensive protection.

How Premier Insurance Agency Can Assist You

Are you seeking answers to questions on condo insurance? Premier Insurance Agency is here to help. Serving the Detroit, MI area, get in touch with us today for professional assistance.