Condominium Insurance

Your own insurance policy. This would provide coverage for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft or other disaster listed in your policy. You would also get liability protection.

A "master policy" provided by the condo/co-op board. This would cover the common areas you share with others in your building like the roof, basement, elevator, boiler and walkways for both liability and physical damage.

To adequately insure your apartment, it is important to know what structural part of your home is covered by the condo/co-op association and what is not. You can do this by reading your association's bylaws and/or proprietary lease. If you have questions, talk to your condo association, insurance professional or family attorney.

Sometimes the association is responsible for insuring the individual condo or co-op units, as they were originally built, including standard fixtures. The individual owner, in this case, would only be responsible for alterations to the original structure of the apartment, like remodeling the kitchen or bathtub. Sometimes this includes not only improvements you make, but those made by previous owners.

In other situations, the condo/co-op association is responsible only for insuring the bare walls, floor and ceiling. The owner must insure kitchen cabinets, built-in appliances, plumbing, wiring, bathroom fixtures etc.

Also ask your insurance professional about the following additional coverages:

• Unit Assessment: This would reimburse you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there was a fire in the lobby and all the unit owners were charged the cost of repairing the loss, this type of insurance would provide coverage.
• Water back-up: Insures your contents for damage by the back-up of sewers or drains.
• Umbrella Liability: This is an inexpensive way to get more liability protection and broader coverage than what is in a standard condo/co-op policy. You may feel more comfortable with this additional protection.
• Flood or earthquake: If you live in an area prone to these disasters, you will need an additional policy since standard homeowners policies do not include either flood or earthquake coverage.
• Floater or endorsement: If you own expensive jewelry, furs or collectibles, you might consider getting additional coverage since there are specific dollar limits for these types of high ticket items. For instance, there is generally a $1,000 limit for theft of jewelry.

When purchasing insurance, it is important to find an agent or company that specializes in condominiums or co-ops. Also don't forget to ask about all available discounts. You can reduce your rates by raising your deductible and by installing a smoke and fire alarm system that rings at an outside service. If you insure your unit with the same company that underwrites your building's insurance policy, you might also get an additional reduction in premium.