Key Takeaways
- All-in coverage insures communal and individual condo unit structures, but not personal items.
- This coverage includes features like drywall, floors, and wiring inside condo units.
- Condo associations purchase all-in coverage, which usually impacts monthly condo fees.
- Single entity and bare walls coverage are alternatives with different scopes of protection.
- HO-6 insurance complements all-in coverage by protecting personal belongings in individual units.
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What Is All-In Coverage?
All-in coverage is a condo insurance policy that covers shared areas along with a unit’s original structural features and fixtures. It doesn’t cover personal belongings or upgrades, so owners often need their own policies. Knowing what your condo association’s master policy includes helps you understand what additional coverage you must carry.
Deep Dive Into All-In Condo Insurance
All-in coverage offers the broadest coverage when it comes to insuring a condominium building. It covers the structure of the building, from features that can be used by all the residents to the features only available in the individual units, such as drywall, carpets, floors, countertops, attached appliances, wiring, and plumbing. This type of coverage is purchased by the condominium association and is outlined in the association’s rules and covenants.
All-in condo insurance provides a greater level of interior coverage for condominium owners. If a condo’s interior is damaged by fire, for instance, the condo community’s all-in insurance policy would cover many of its interior elements. All-in condo insurance covers fixtures, installations, and additions to the interior surfaces of your walls, floors, and ceilings. You’d only need a limited amount of individual homeowners insurance under a condo community’s all-in insurance master policy.
All-in coverage applies to common areas as well as anything that is used predominately by a condominium resident. Owners of individual condo units are still advised to purchase their own insurance to cover damages to anything from within their own unit that is not part of the original design and layout plan, such as additions or remodels, as well as furniture, clothing, and other personal items referred to as contents.
Comparing All-In Coverage to Other Condo Insurance Options
Rather than choose all-in coverage, a condominium association can instead choose to purchase single entity coverage or bare walls coverage. Single entity coverage applies to all property, including items in individual units. It does not apply to the personal items, such as computers and clothing, of the individual condo residents, and does not apply to any enhancements made to the condo unit. This type of insurance is the most common property insurance purchased by condominium associations.
Bare walls coverage is the most limited type of coverage that a condominium association can choose to purchase. It only applies to the common areas of the condo, such as the entryway, and does not cover anything inside the individual units, such as the fixtures, installations, and appliances. A bare walls-in policy focuses on the actual structure of the condo—the exterior, roofing, framing, wiring, piping, insulation, and the drywall itself.
Who Pays for All-In Coverage?
The condo board of directors (elected by the homeowners to run the condominium) is responsible for purchasing insurance, and the cost should be included in your monthly condo fees.
What Is HO-6 Insurance?
HO-6 insurance is a type of policy for condo owners. It provides protection to the interiors of their units and their personal belongings. HO-6 insurance doesn’t cover any common areas. HO-6 insurance works in coordination with the condo association’s own insurance, which can be either bare walls coverage or all-in coverage.
How Much Is Condo Insurance?
The national average for condo insurance is $625 a year, but have in mind the cost can vary greatly by state and depending on a number of factors, such as location and type of master policy (single entity, bare walls, or all-inclusive.)
The Botton Line
All-in coverage is the most comprehensive condo insurance because it protects both common areas and a unit’s original structural features and fixtures.
Owners still need personal policies for belongings and upgrades, making it important to understand how responsibilities are divided between individual and communal coverage. Reviewing the specifics of the condo’s master policy ensures there are no gaps in protection.
