California Condo Insurance



Condo and renters insurance both provide personal property and liability protection. However, condo owners need additional coverage for the building based on their condominium association's master policy and coverage. Limits are usually maxed at $100,000.

Condo Association Master Policy

Your condo HOA will insure the building in two possible ways:

a) bare walls; or
b) single entity.

With bare wall coverage, the HOA only insures the building structure itself, such as walls, roofs, windows, floors, elevators, etc. The association will not cover things inside your condo unit like appliances, paint, cabinets, carpeting, wallpaper, plumbing, wiring, toilets, sinks, etc. The condo owner is responsible for repairing and maintaining everything inside the unit.

With single entity coverage, the HOA insures the building as well as certain fixtures inside your unit like carpet, cabinets and appliances. The condo owner is only responsible for their personal property actually inside the unit and for additions or changes made to the original structure. Details are divulged for exactly what the HOA association is responsible for and what the condo owner is responsible for. Condo owners should first review their HOA's master policy to figure out what and how much in the unit they will be responsible replacing.

Once you determine if the HOA insures single entity or single entity coverage, you can calculate the additional amounts of coverage you need for your unit. Your policy should cover all items not covered by the HOA's master policy, and any improvements you've made to the property. For example, if your association's master policy is a single entity policy, it will cover a certain dollar amount for your carpet. If you upgrade your carpet, you are responsible to insure the difference between the master policy's coverage and the value of your new carpet. Loss of use is generally limited to 40 percent of the contents limit.

Loss assessment is found under the condo association's bylaws. Each condo owner will be assessed a proportionate share to cover major property and liability losses. For example if the building and commonly shared areas are destroyed by an insured disaster such as a fire and the losses are not fully covered by the master policy, your condo HOA may assess a certain dollar amount to all unit owners to cover the difference. If you have loss assessment coverage on your condo, that will help pay for your share of the assessment. The standard limit for loss assessment coverage is $1,000. Check with your insurer to see if higher limits are available.

Determine Your coverage limits

Reading the master policy, find out:

• What is the association responsible for insuring?
• What are you responsible for insuring?
• How much coverage do you need for loss assessment?
• How much coverage do your need for your belongings?
• Do you have replacement cost or actual cash value coverage for my possessions?
• Are there policy limits for your valuables?
• Are your valuables worth more than the master policy limits?
• What does the liability coverage include?
• Do you need earthquake or flood coverage for your unit or belongings?

To find out how much coverage you need for your condo insurance, ad possessions; Inventory everything you own including TVs, clothing, stereos, video cameras, computers, artwork, pots and pans, jewelry, collectibles, antiques, furniture. Add up the total cost. Include purchase dates, amounts paid and serial numbers. Catalog receipts and take pictures. Some possessions such as firearms, jewelry, furs and computers require additional coverages. These items usually have total theft limits so the insurer will only pay a specified amount for the item if it is destroyed or stolen.

Review your Condo Insurance limits and adjust your "inventory" annually so you do not become over or under insured.