Common Area

What Does Common Area Mean?

A common area is a part of a property that is shared and used by multiple residents. This includes spaces such as the lobby of an apartment building, the parking lot of a condominium, or shared amenities like a pool and exercise room in a housing complex. Essentially, any area that is not designated as private property can be considered a common area.

Insuranceopedia Explains Common Area

Common areas can lead to liability issues, which is why landlord’s insurance often includes coverage for these shared spaces, among others. Because shared spaces fall outside what individual tenants insure, landlords typically need a policy that covers the building itself, which is why commercial landlord insurance usually includes liability for these areas. Renters are generally not responsible for insuring common areas, though renters who want to protect their own belongings inside the unit can look at the top renters insurance providers, which cover personal property and personal liability rather than the shared parts of the building. In the case of condominium buildings, the condo owner’s association typically purchases common area insurance on behalf of all residents. A portion of the annual dues paid by owners goes toward covering the insurance premiums. When shopping for a personal HO6 policy that works alongside the association’s master policy, owners can compare the best condo insurance companies to find one that handles interior coverage and personal property well.