Condo Master Insurance Policy in Massachusetts

Condo Master Insurance protection All Under One Policy!

When insuring a condo complex, there is more than the building to insure. Protecting common areas shared by unit owners and the exterior of the building are important responsibilities. However, it’s tough to find the right amount of coverage at a price you can afford. LoPriore can help you build a custom condo master insurance policy that will provide the unique protection you need to protect your condominium against potential risks.

 
Condo Master Insurance

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What is Master Condo Insurance?

Condo master insurance policy protects a condo’s exterior and, sometimes, portions of the interior. It also provides liability coverage for accidents and injuries that occur in the common areas of the condominium. 

A master insurance policy helps maintain the shared spaces in a condo complex, but having one in place does not mean that unit owners do not need to get their own policies. Condominium unit owners face just as much risk as homeowners, but they may have different insurance needs based on what the association insures in the master policy. 

A condo master insurance policy offers limited coverage since it covers the overall condo structure and building, both the interior and exterior spaces, but not the individual units. It is designed to protect the limited common areas that unit owners share, but since it does not cover the units themselves, unit owners will need to get their own insurance to protect their personal belongings.

Typically, the master policy will be held by the homeowner’s association (HOA) or condominium board since it protects all unit owners. It will be used to solve damage or liability issues that may arise within the condo’s shared areas. Having this policy in place also allows tenants to gauge the amount of coverage they need for their personal homeowner’s insurance.

Why do I need Condo Insurance in MA?

Insurance policies carried by condominium unit owners don’t provide coverage for the outside of the building or liability coverage for accidents in common areas. Additionally, lenders for each condo unit often require this coverage as a clause in terms of the mortgage.

Who in Massachusetts Needs Master Condo Insurance?

All condominium and co-op associations need to protect both the association and unit owners’ interests by providing both property and liability coverage for the building. Contrary to most other insurance policies, a condo master policy is handled by the condo association rather than the individual unit owners. 

Regardless of how many unit owners there may be in a specific condo complex, the condo association will need to get a master insurance policy to protect the building in case of disaster or loss. The master policy acts as collective insurance that covers all unit owners’ shared risks, so it is to be held by the association.

Master Condo Insurance Coverage Details

The protection supplies your condo master insurance policy with coverage for building damages and liability for accidents and injuries that occur in areas shared by all condo unit owners. Indeed, coverage may be minimal or include optional endorsements to provide more extended coverage.

Generally, the master policy covers shared spaces used by multiple unit owners and the building’s structure. Typically, this form of insurance offers three levels of property coverage.

  1. Bare Walls-In Coverage
The bare walls-in policy focuses more on the condo’s exterior framing and any structure or property within that area, such as roofing, piping, or insulation. Thus, it does not cover interior fixtures, lighting, or other installations within the condo building. It is considered the least inclusive master policy that poses a need for unit owners to purchase more condo insurance for their personal belongings. 
  1. Single Entity Coverage
Single-entity coverage covers basic elements, such as walls, floors, roof, and standard furnishing in each unit. It does not cover for upgrades or improvements made by the unit owner or their personal property. These two things will have to be covered by the unit owner’s personal condo insurance. 
  1. All-In Coverage
The all-in policy has a broader coverage as it also covers the interior part of the condo, including any fixtures, installations, and additions that may have been made to the walls or floors. It may also cover built-in appliances that may come with each unit and any improvements made at the unit owner’s expense.  Since this policy is much more comprehensive than the other two types, it usually requires less coverage needs for the individual unit owners. All-in policies will also cover for upgraded fixtures and finishes, so owners will usually need to purchase condo insurance ma for personal belongings. Aside from property coverage, a condo association master insurance policy also offers liability insurance to protect the association from potential lawsuits. The general liability coverage can help pay for medical or legal expenses that may arise from accidents and injuries within the condo complex. This is particularly important if the condo has amenities like pools or fitness centers, which can pose a risk for bodily injuries.   Like other insurance policies, condo insurance in Massachusetts may also come with optional enhancements and additions to make the insurance package more comprehensive.

Property Insurance

  • Commercial Property Coverage: This is protection for loss or damage to real property (land and buildings) or personal property (everything else). It requires a deductible upon filing a claim.
  • Buildings and Business Personal Property: Building coverage describes coverage for the actual building, completed additions, outdoor structures, permanently installed fixtures and equipment, and machinery.
  • Employee Dishonesty Coverage: This optional coverage protects against financial or property loss due to employees’ fraudulent acts
  • Inland Marine Insurance: This optional coverage protects the property in transit and property of others left in your care, contractor’s equipment, and other property not usually found at a fixed location.

General Liability

  • Commercial General Liability Coverages: Liability coverage protects against bodily injury or property damage for which you’re legally responsible. Coverage for liability arising from personal injury and advertising injury, medical expenses, accidents occurring on the premises or away from the premises and products or completed operations, and your defense costs may also be covered.
  • Medical payments: Payments for medical expenses due to accidents on the premises are covered regardless of the insured’s liability.
  • Fire Damage Limit: This coverage pays for claims related to fire damage to rented premises caused by an insured’s negligence.
  • Commercial Umbrella: This additional layer of coverage provides excess liability coverage beyond the limits of your underlying policies. It is important to remember that underlying policies must be in force for umbrella coverage to be valid.
  • Lastly, directors and Officers Liability: This optional coverage protects high-level employees or trustees against claims from stockholders, employees, and clients.

Coverage Enhancements and Endorsements

  • Equipment Breakdown: This optional coverage protects all electrical systems not covered by other policies, including computer and telephone systems.
  • Business Income and Extra Expense: When damages are severe enough to interrupt business, this coverage supplies funds for lost income and the extra expenses of running the business while damaged.
  • Law and Ordinance: When a building is substantially damaged, local ordinances may require a rebuild to meet current local building codes. Coverages may include the cost of demolition, debris removal, and increased construction cost per building code.
  • Water Backup of Sewers and Drains: This optional add-on coverage protects from water damages caused by a backed-up drain or sump pump.
  • Blanket Insurance: This supplies coverage for multiple properties up to an agreed-upon limit for all scheduled locations.
  • Lastly, flood and Earthquake: This optional coverage is not included in standard policies. However, it’s available as buyback coverage and is priced according to requested limits.

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Frequently Asked Questions About Condo Master Insurance

How Much Does a Condo Master Insurance Cost?

There are many factors involved in determining policy costs, including:

  • Coverages required by the bylaws of the association
  • The amount of coverage on the building and the deductible amount
  • Lastly, the type of building construction, whether the building is updated to meet current building codes, and if sprinklers are installed
What Does Condo Association Insurance Cover?

The master policy covers common areas used by multiple unit owners including outdoor spaces (like parks, pools, parking lots, and walkways) and indoor spaces (like a gym, event space, and the association’s office). Beyond that, the amount of coverage supplied by master security policies can vary widely. Some policies cover the interior of the units, employee dishonesty, sewer/water back up and additional optional risks, while others only provide protection for shared areas.

What Are Walls In coverage?

Sometimes called All-in, this optional coverage provides protection for the interior surfaces of the units. Coverage included fixtures and installations and may extend coverage to built-in appliances that come with the unit. Conversely, bare walls coverage focuses on the structure of the building, only covering individual units from the drywall out.

The Master Policy Covers What Possessions?

It’s important to understand that this condo master insurance policy does not cover owners’ possessions. Typically, a master policy covers permanently installed fixtures, built-in appliances, and machinery that maintains the premises.

Will I Have to Pay a Deductible When I File a Claim?

Typically, a master policy has a deductible that is divided among the group of all condo unit owners. Deductibles usually start at $500 and are directly related to the cost of your premium.

How Much Do Master Condo Insurance Policies Cost?

Since all the unit owners share condominium insurance in Massachusetts, the deductibles are also paid among all of them. That said, the cost will vary based on factors like the coverage required by the association’s bylaws, the type of building, where the building is located, and such. 

A general master policy with a $1 million coverage to $2 million can range from $684 to $948 annually. However, this price can still vary based on your city and state, so it will be best to get in touch with one of our independent insurance agents to help you get a more accurate condo master quote for your desired policy.

Why Choose Us

Here at LoPriore, we aim to make the insurance application process simple and easy. If you are interested in learning more about the master policies you can choose from, please contact our independent insurance agents to help you look through your options. We will listen to your needs and answer whatever questions you may have about your desired insurance policy.

We can connect you to different providers through our many partner insurance companies to help you find the most suitable policy. If you are unsure of where to start, do not worry as our team can assist you through the entire process. Start by requesting a condo association master insurance quote or uploading your current policy, and we can help you from there.

Learn More About a Condo Master Insurance Policy

A condo master insurance policy is an important part of protecting condo unit owners from potential risks. Thus, to learn more about the insurance coverage you need for condominiums, get in touch today. Our experienced agents are standing by to answer your questions, provide a quick quote, or help you build a custom insurance package to meet your unique needs and budget.

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