Common areas - are the stairs, hallways, swimming pool, clubhouses and walkways, with each unit owner’s interest measured by the proportionate value the unit bears to the total value of all units.
Limited common areas are areas shared between some, but not all units, for example, a shared patio area between units or a balcony. The common areas are managed by the condominium association.
Although all unit owners belong to the association, a group of owners manage its affairs as a board of directors while a property management company generally takes care of the daily operations of the condo community.
Property Coverage - Unit owners need their own individual property insurance policy, designed specifically for condominiums. It is in some ways a cross between a homeowners’ and a tenant policy. Like a tenant policy, there is no responsibility for the outside structure. The unit owner doesn’t have to worry about replacing the roof or siding; the association takes care of that.What is the concern of the owner is the unit itself. A tenant’s policy covers the tenant’s personal property and any additions and alterations the tenant may add.
For condominiums it’s a little more complicated. The following are considered part of the dwelling:
• Alterations, including the addition of wall-to-wall carpet or hardwood floors.
• Appliances, such as stoves, refrigerators, furnaces and hot water heaters.
• Fixtures, such as sinks, toilets, tubs and other built-in features.
• Improvements that are part of the building within the “residence premises.”
Loss assessment - The policy covers amounts the association would charge the unit owner for damage to property owned by all members collectively. The loss must be by a peril insured against. Assessments that are the result of actions of a governmental body are not covered.
