Connecticut Real Estate Blog - Real Real Estate in CT

When you purchase a condominum unit, you are purchasing the unit itself and partial ownership of the condominium complex including the common areas.  The condominum association, consisting of owners, sets the rules for the complex and collects a monthly charge (called HOA fees) to pay for regular expenses like lawn maintenance, snow removal, water, management fees and insurance.  The insurance, called the master policy, is included in the HOA fees and covers only the common areas and structural elements, not personal property within the unit. 

Many buyers think they’re off the hook for home owner’s insurance but are unpleasantly surprised when they have a problem within their unit.  Although your mortgage lender will probably not require you to have a separate insurance policy covering your personal property, it is a good idea to get a policy to cover the contents of your home. 

For example, if there is a leak in your 2nd floor bathroom into your kitchen and there is extensive water damage, your association’s master policy will most likely not cover the cost for repairing the leak, the sheetrock, kitchen cabinets or appliances.  Same thing if there is a fire in your unit.  The complex’s master policy also probably doesn’t cover personal liability or medical expenses to people who are guests in your home or who are renters. 

Review your association’s master policy and determine whether the policy provides you with ample coverage or if there are some holes in the policy that could leave you at risk for an unplanned major expense.