Your condominium corporation is required by law to insure individual units and the common elements of the building against major perils to cover replacement costs. Your condominium also will have public liability insurance with respect to any common areas. If there is an incident covered by your condominium’s insurance of the building, proceeds of the insurance policy will be paid to a trustee pursuant to an insurance trust agreement with the condominium corporation. The trustee will then disburse proceeds appropriately. The condominium corporation’s insurance will not cover the replacement costs of any contents or improvements you have made to your unit.
What Insurance You Need
You alone are responsible for arranging insurance coverage to protect your contents and improvements or to protect you against a third party liability claim arising within the confines of your condo unit. Your condominium corporation’s insurance will not cover you in these areas. However, most insurance companies offer specific comprehensive insurance packages for condo unit owners to fill in for insurance not covered by your condo corporation.