A majority of complexes offer amazing amenities such as pools, a club house, parks, tennis courts and more. In some cases you don’t even have to mow a lawn or shovel snow off the driveway! These wonderful perks are provided to you through your membership in a Homeowners Association.
Another benefit provided by the Homeowners Association is a basic insurance policy that covers the common or shared ground of the complex as well as all the exterior features of your unit or building such as the roof, stairs or the outside facade. Often times this policy is referred to as a “Master Policy” or an “Association Policy” and the premium is paid by a portion of your HOA dues each month.
A common misconception is that the HOA Policy is all the coverage you need. Truth is the coverage is very limited and most likely has no provisions for the interior of your unit, your personal property, additional living expense coverage, personal liability protection or medical payments to others.
This is where a condo or town home Insurance Policy becomes essential. Otherwise known as a HO-6 Policy, the condo or town home Policy is very similar to a Homeowners Insurance Policy in what it insures against as well as the different coverages provided on the policy.