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Master policies cover risks that all of its members share and have in common.

Condominium units are part of a larger condominium development. They’re titled to the individual condominium owners, and they’re privately owned. Every condominium development has common elements though. They’re owned in common by the collective condominium owners. Those common elements usually consist of roofs, building framing and exteriors, hallways, elevators, sidewalks, roads, parking lots, pools, landscaping and lawns. The individual condominium owners usually carry their own insurance for what they own, and the condominium association carries its own separate coverage for what it collectively owns. That’s what a condominium association’s master policy is.

What the association’s master policy covers

The master policy covers risks that all of its members share and have in common. All condo association master policies have the following basic coverage:

  • Liability protection for lawsuits involving personal injury to persons injured on common areas
  • Property damage to common areas

Other optional coverage is available, depending on the type of condominium development, its board’s organizational structure and where the development is located. That optional coverage can include but not be limited to director and officer liability, theft or mishandling of condominium association funds or even demolition and increased cost of construction after a catastrophic event.

Every condominium association has its own unique needs. Some master policies will only insure your roof and adjoining walls, while others might cover electrical systems, plumbing or even the walls and floors of your unit.

To learn more about what type of master policy that your condominium association has, take a look at your by-laws. Most sets of by-laws address the interiors of units. The association is responsible for everything else. If you’re in the process of buying a condo, the by-laws will tell you exactly what you’re going to get and what you condominium association insures under its master policy. Still have questions? Contact an agent and we’ll be happy to help find you the perfect policy.