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Why might the condo association's master policy not be sufficient for individual unit owners?


Why might the condo association's master policy not be sufficient for individual unit owners?


Owning a condo comes with the assurance of a master policy held by the condo association. However, individual unit owners may face challenges when relying solely on this master policy.

Challenges with Master Policy

Limited Coverage for Personal Belongings While the condo association's master policy typically covers common areas and structural elements, it often falls short in protecting personal belongings inside the units. Understanding these limitations is crucial for individual owners.

Exclusions in Master Policy Not all damages are created equal in the eyes of the master policy. Some events, like floods or earthquakes, might be excluded. Unit owners need to recognize these exclusions to bridge potential coverage gaps.

Deductible Costs for Unit Owners In the event of a claim, the master policy's deductible is shared among all unit owners. This could result in unexpected costs for individual owners, emphasizing the need for additional coverage.

Importance of Individual Policies

Comprehensive Coverage Individual unit owner policies offer a more tailored approach, covering personal belongings, improvements, and betterments. This ensures a comprehensive safety net, especially in scenarios not accounted for by the master policy.

Personal Liability Protection Master policies may lack personal liability coverage for unit owners. Having an individual policy safeguards against legal expenses and medical costs in case of accidents within the unit.

Additional Living Expenses In the aftermath of a covered event, individual policies can provide financial support for temporary living arrangements. This is a crucial aspect often overlooked by those relying solely on the master policy.

Common Misconceptions

Assuming Master Policy is Sufficient One common misconception is assuming the master policy is all-encompassing. Unit owners need to recognize its limitations and take proactive steps to secure their financial well-being.

Understanding Coverage Gaps Misunderstandings about coverage gaps can lead to financial hardships. It's vital for unit owners to grasp the intricacies of the master policy and supplement it accordingly.

Real-Life Scenarios

Case Studies of Inadequate Coverage Real-life examples highlight the consequences of inadequate coverage. Learning from these cases emphasizes the importance of being proactive in securing individual policies.

Lessons Learned These scenarios provide valuable lessons, demonstrating the necessity of a comprehensive approach to insurance for individual unit owners.

Assessing Coverage Gaps

Reviewing Master Policy Terms Understanding the master policy's terms is the first step in assessing coverage gaps. Unit owners should be familiar with its limitations and exclusions to make informed decisions.

Conducting a Risk Assessment A personalized risk assessment helps identify potential threats that might not be adequately addressed by the master policy. This proactive approach minimizes unexpected financial burdens.

Tips for Unit Owners

Consulting Insurance Professionals Engaging with insurance professionals ensures unit owners make well-informed decisions. These experts can provide personalized advice based on the specific needs of individual owners.

Understanding Policy Limits Knowing the limits of both the master policy and individual policies prevents surprises during claims. Being aware of these boundaries allows for strategic planning.


What does the master policy typically cover? The master policy generally covers common areas, structural elements, and liability for the condo association.

Are all personal belongings covered under the master policy? No, personal belongings are typically not covered by the master policy, highlighting the need for individual coverage.

Can individual policies overlap with the master policy? Yes, individual policies can complement the master policy by filling coverage gaps.

How does the master policy affect deductible costs for unit owners? Unit owners share the master policy deductible, potentially leading to unexpected out-of-pocket expenses.

Is personal liability covered by the master policy? Personal liability coverage is often limited in the master policy, necessitating individual coverage for adequate protection.

Can unit owners customize their coverage? Yes, individual policies offer customization options to tailor coverage based on specific needs and preferences.


In conclusion, the condo association's master policy provides a foundation, but individual unit owners must recognize its limitations. By proactively addressing coverage gaps through personalized insurance, owners safeguard their financial well-being. It's not just about having insurance; it's about having the right insurance.

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