You share an undivided interest in the common elements outside of your door with the other condo owners. Those might consist of the roof, hallways, exterior walls, sidewalks, lawns and the like. For those elements owned in common with the other condo owners, your condominium association collects monthly assessments. Part of those assessments are budgeted to insure the common areas. Your by-laws are going to tell you whether you might want “bare walls-in” or “all-in” coverage for the inside of your unit.

If your lender is going to require you to maintain condo coverage, it’s probably going to be happy with “bare walls-in” coverage at a minimum of 20 percent of your condo’s value. That’s because everything else outside of your door is going to be covered by your condo association’s master policy. Fixtures in your condo aren’t covered. “All-in” coverage insures fixtures plus any upgrades you’ve made to your condo. It spins off of your master policy. In either case, make sure that your personal property inside of your unit is adequately insured.

It’s unlikely that your “bare walls-in” or “all-in” coverage is going to insure you for flooding, hail or wind damage. Nevertheless, as an owner it’s smart to cover your condo and possessions for damage or loss from flood or wind damage. You’ll need separate endorsements for these, but you’re wise to purchase this additional coverage.