The Differences Between a Condo Owners Policy Vs. COA Master Policy

When you buy a condo, your purchase comes with the coverage of a master insurance policy provided by the condo owner’s association (COA). You will still need your own condo insurance to protect your belongings and the inside of your unit. Premier Insurance Advisors in Hilton Head Island, SC offers condo insurance to those all around the state. It is important to educate yourself on the subject and secure a policy as soon as possible. Here’s why:

The COA master policy covers the construction of the building. Items include its roofs, the public grounds, and common areas, like the swimming pool, the bare walls, and the original fixtures of the building. Master policies fall into two categories: walls-in or walls-out.

  • Walls-in covers the buildings’ construction elements – elevators, floors, roof, and walls, plus the appliances, cabinets, carpet, wall coverings.
  • Walls-out covers the buildings’ construction elements – elevators, floors, roof, and walls.

Neither policy type covers the condo owner’s belongings. That’s where a personal condo policy comes into play. It covers changes the condo owner makes to the interior, like a built-in bookcase and their belongings. It also covers appliances and interior repairs.

Similar to a homeowners’ policy, it also provides personal liability coverage. This protects you if a visitor to your condo becomes injured. They could sue you for the harm that befell them falling down your stairs, for example. The liability portion of the policy protects the policyholder by paying the medical costs and any court-ordered settlement up to the policy limit.

Every policy differs but, generally, a condo unit (personal) policy covers the individual’s personal property and condo upgrades from damage or loss from the following:

  • accidental discharge or overflow of water from pipes/plumbing
  • an accidental eruption of hot water heating system
  • aircraft damage (crashing into the building)
  • artificially generated electrical current
  • explosion
  • falling objects
  • fire or lightning
  • freezing weather effects
  • riot or civil commotion
  • smoke damage
  • theft
  • the weight of ice, snow, or sleet
  • windstorm or hail
  • vandalism or malicious mischief
  • vehicle damage

Contact Premier Insurance Advisors of Hilton Head Island, SC to learn more about personal, also known as unit, condo insurance. Let us help you determine your needs and appropriately cover your items.