In the case of hazards such as fire or lightning, windstorm, smoke, vandalism and malicious mischief, theft, or accidental discharge of water that affected your building, the condo insurance coverage would take care of the outside walls, but your own condo owners insurance policy would have to cover the effects of these things inside your unit.
Many condo associations also distinguish between contents that are your responsibility versus structural components enumerated in the association condo insurance policy. While the condo policy might cover flooring, cabinetry, countertops, and carpeting, your personal policy would cover losses for furniture, area rugs, electronics, jewelry and your personal collectibles, and lighting. In the case of something like a fire, both insurance companies would pay for specific things.
Condo insurance protects your personal property, protects the interior of your unit, and offers liability in case a guest is injured in your unit. They may also have other provisions that are unique to condos:
- Any additions, alterations, or installations you add to your unit.
- Loss of use and additional living expenses if you have to temporarily vacate the place during repairs after loss.
- Loss assessment, to cover all or part of your share of what the condo association insists you contribute to their deductible.
- Absentee ownership if you rent your unit out.
- Loss of income based on the fair rental value if your unit is damaged and unable to be rented out.