Do I need insurance on top of association’s?

Q: We are buying a condo apartment, and the association has insurance coverage for the whole building. When we tried to purchase insurance to cover just the property’s contents, we were told that it did not work that way. Why do we need to buy the same type of insurance that our building already purchased? — Carmine

A: Every condominium unit owner, and for that matter, every homeowner, should carry hazard insurance, and when called for, additional coverages such as for windstorms and earthquakes.

Insurance can seem expensive but repairing or replacing your home and its contents is devastating if you are uninsured.

Your association’s insurance policy only covers losses concerning the building’s exteriors, shared amenities, and common areas.

You should get a policy that will protect your unit and your possessions. You will also want liability protection in case someone is injured while visiting your home.

A good way to think about your insurance policy is that it will cover you from your walls in, while the association’s policy covers from your walls out.

Most policies will cover your flooring, walls, and built-in fixtures like countertops and vanities.

Your belongings will also be protected from theft and damage, often even if the loss occurs outside your home.

There is liability protection if a visitor is hurt.

If your home is damaged badly enough, your policy will even pay to put you up in a hotel and cover the additional expenses of staying there.

Some policies will even help you pay for damages to the common areas that exceed the building’s policy limits that you will end up paying as a special assessment.

Do not just buy the cheapest policy you can find. Instead, find an experienced insurance agent to walk you through the details and make sure you get the right coverage for the best price.