When considering insurance for a condominium unit, owners will find two types of coverage – individual condo insurance and the master policy that protects the condominium project (and common areas). If you own or are considering buying a condo in and around Orland Park, IL, the insurance professionals at RetireMax Insurance can help decipher the difference between a master policy and an individual condo insurance policy.
Understanding the Difference Between a Master Policy and an Individual Condo Policy
Understanding the difference is vital for condo owners to ensure adequate protection.
The Master Insurance Policy/ Homeowners Association Policy
The HOA’s master insurance policy protects the collective interests of all unit owners. It is bought/managed by the condo association’s board of directors. This commercial policy provides coverage for the association’s common areas, the building’s structural components, plus liability coverage for the association.
Individual Condo Insurance Policy/HO-6 Policy
Each condo unit owner purchases an individual condo insurance policy to protect their belongings and personal effects. This policy specifically offers coverage for the unit’s interior – from the walls inward. Also, it includes coverage for living expenses and liability protection if an injury/accident happens within the condominium unit. Individual policies can be tailored to offer protection against risks not covered by the master policy.
Why Both Policies Are Necessary
Without individual condo insurance, condominium unit owners may have gaps in their coverage regarding their personal belongings (electronics, valuables, furniture, clothing), interior fixtures, and liability protection. Individual condo insurance can help cover additional living costs if the unit is not habitable due to a covered loss.
Contact a Leading Orland Park, IL Insurance Company
For more information regarding condominium insurance options, contact a staff member of RetireMax Insurance at 708-388-9979.
