How does condo insurance handle shared walls?

Coverage typically follows the master policy's delineation of responsibility between individual units and common elements.

Condo insurance, often referred to as an HO-6 policy, is designed to cover the unit owner's personal property and the interior space of their unit. When it comes to shared walls, things can get a bit tricky because these usually fall under what's known as common elements, which are generally covered by the condo association's master insurance policy. The master policy will typically cover anything outside the unit, such as the building’s structure, roof, and shared walls. The individual condo insurance policy covers the interior, like flooring, appliances, and personal belongings within the unit. However, there is often a grey area where the responsibility might overlap, especially in cases where damage to shared walls affects both the interior and structure. It's important for condo owners to review the association's bylaws, which outline the specific insurance responsibilities, ensuring that they have appropriate coverage, especially in these in-between scenarios.

Imagine you live in a condo and during a storm, a tree falls and causes damage to the shared wall between your unit and your neighbor's. The structural damage to the wall itself would likely be covered under the condo association's master policy, as it is considered part of the building's structure. However, if the wall damage caused issues to your unit's interiors, like damaging wallpaper or a built-in bookshelf inside your unit, this would usually fall under your personal condo insurance. This scenario highlights why understanding the division of responsibilities between individual and master policies is crucial.

As a condo owner, one of the best steps you can take is to thoroughly read and understand your condo association’s master insurance policy and the bylaws related to insurance. This will help you identify what is covered under the association’s insurance and what you need to cover under your personal insurance. It’s also a great idea to talk to your insurance agent to ensure your policy fills any potential gaps, especially concerning shared spaces or structural elements. Regularly reviewing your coverage needs as circumstances change is a wise practice, too, helping you avoid unexpected expenses.