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Understanding condo insurance | Michigan condo insurance

posted Mar 3, 2016, 11:30 AM by Jason Grubbs   [ updated Mar 8, 2018, 2:54 PM ]
Insuring a condo is significantly different than insuring a home and is an area of insurance where we often find there is confusion and misunderstanding.

When you purchase a condo you own your individual unit outright and share in the ownership of the rest of the complex with the other owners.

The condo association customarily insures common areas like the exterior of the buildings and separate service and recreation buildings within the complex while each unit owner is typically responsible for insuring everything inside their unit.

The bylaws for each condo association include an insurance section defining insurance responsibilities of the association and each unit owner.  It is advisable to review this section of the bylaws as these responsibilities can differ considerably from one condo association to the next.  As a unit owner you need to understand your insurance responsibilities to be certain your individual condo insurance policy provides suitable coverage.

An individual condo insurance policy will provide coverage for:

Dwelling - portions of the building that are your responsibility; this may include flooring, cabinets, countertops, and light fixtures.
Personal Property - your personal belongings including appliances, furniture, clothing, dishware, and electronics.  Be aware coverage is limited for some types of items, such as jewelry and collectibles, that can be fully insured with a rider.
Loss Of Use - covers extra expenses you may incur if your condo is too damaged to live in while repairs or reconstruction is being completed.
Liability - your financial responsibilities if a guest visiting your property is injured