A common mistake is to assume the Condo Association provides the only insurance needed, and the cost is covered in the monthly association fees. The Association will carry a master policy, but this type of insurance typically will not cover what is inside your condo.
The types of insurance typically needed:
The Master Association Policy (Walls-Out Coverage): This policy is funded directly through your monthly association dues. It covers the building structure, the roof, common areas, elevators, lobbies, and outer structural concrete walls. Policies vary from building to building so be sure to check what the Master Pocily actually covers, for example, what about windows and exterior doors.
The Master Association Flood Policy: If the building is in a flood zone it will typically carry a flood policy. This will cover the same building elements as the Master Association Policy in the event of a flood.
The HO6 Personal Condo Policy (Walls-In Coverage): This is the policy you, as an individual owner, must purchase independently. It covers your personal belongings, so everything from the drywall inwards. HO6 also has liability coverage in the event something you do damages another unit or the common areas. For example, your bathtub overflows and damages the unit below. Most condos make this mandatory. There is also an optional loss adjustment part of HO6. This covers special assessments raised in the event a disaster that the Master Association isn’t able to fully cover.
You can review condo Master Association Policies before purchasing a condo, your agent can get them directly from the association or from the association’s insurer.