Definition - What does Condominium Insurance mean?
Condominium insurance is a type of homeowner's insurance that financially protects a policyholder's condominium from various perils, such as fire, weather damage, vandalism, smoke, and explosions. Moreover, it only protects the individual unit, not common areas, such as hallways, staircases, and elevators.
Insuranceopedia explains Condominium Insurance
Condominium insurance offers your personal property some protection, but it often does not cover water, vermin, or earthquake damage. In addition, the condo association's master policy plays a major role in determining the minimal amount of coverage a condo owner may want to purchase. Some master policies only cover common areas and the exterior building, while others may include items besides personal property in individual units. The appropriate amount of coverage also depends on the level of risk in the area (e.g., an arid area is not likely to need flood coverage, for instance), the worth of the policyholder's personal property, and other related factors.
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