What type of insurance do I need for a condominium?
If you have purchased a condo or co-op, the bank will require insurance to protect its investment in your home. You may, however, need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building like the lobby.
You will need two separate policies to protect your investment:
To adequately insure your apartment, it is important to know what structural parts of your home are covered by the condo/co-op association and those which are not covered. You can do this by reading your association’s by-laws and/or proprietary lease. If you have questions, talk to your condo association, contact us 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, is only responsible for alterations to the original structure of the apartment, such as remodeling the kitchen or bathroom. 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.