What Does Condo Insurance for a High-End Unit Really Cover?

If you’ve purchased insurance to go with your new condo unit, you might be wondering what it covers. After all, living in a multi-unit building is much different than living in a detached home. There’s also the issue of what your personal condo insurance will cover and what the building’s insurance will cover. Here’s how they both stack up:

Your building’s insurance:

Damages to the Building’s Exterior
Damages that occur to the exterior, such as fire or weather damage, will be covered by the building’s insurer.

Damages to the Common Spaces
Common spaces, such as the gym, dog walking area, elevators, lobby and garbage facilities, will be covered by the building’s insurer in the event that there is damage.

Personal Injury in a Common Area
The building’s insurance will also cover injuries sustained in a common area, such as someone tripping on an object in a common stairwell.

Your personal condo insurance:

Damage in Your Own Unit
Damages that occur to built-in fixtures, such as lighting, cabinetry and other fixtures are covered by your own condo insurance, although some luxury buildings may require you to have insurance that covers everything aside from the floor, ceilings and walls.

Accommodation if You Are Displaced
If there is damage in your unit due to flooding, fire or other disasters beyond your control, your condo insurance will cover hotel costs until you can inhabit your unit again.

Someone’s Injuries Within Your Unit
If someone is accidentally hurt in your unit, perhaps hits their head on a fixture or trips and falls on a piece of furniture, your condo insurance will help you avoid lawsuits.

Additionally, there are some items that may not be covered by either your personal condo insurance or your building’s insurance. This includes the theft of personal items, intentional injuries, and normal wear and tear. Check with your real estate agent or insurance broker if you have questions about what your luxury condo insurance does and doesn’t cover.