Typically, as a condo owner, you’ll receive some level of insurance under the condominium’s Master Insurance Policy, however, the level or degree of insurance can vary drastically from one building/complex to another.
Master Insurance Policies cover the common areas such as the structure, lobby, elevators, and even swimming pools, but do not provide coverage for any building additions or alterations (upgrades or changes from the original build) made to an individual unit or the personal belongings inside of it.
A unit owner can be held liable for damage to the building or to other units caused from plumbing issues, water, fire, and many other acts, which highlights the need for adequate liability coverage under the Condo Insurance policy. Also, when there is a major claim and the Master Policy limits are exhausted, any additional coverage needed for indemnification will be passed along to the unit owner. This coverage is otherwise known as “Loss Assessment” and is included on an HO-6 or Unit Owners policy and variable limits are available.
In theory, the overlay between then Master Policy and the Unit Owners policy should encompass the entirety of the property, and in the event of a claim, they should work together to repair and replace the property as it was.