Are condominium unit owners required to have homeowners insurance?

Answer 1

Yes. However, insurance for a condominium unit is more complicated than insuring a private home. Insurance provisions are made a part of the boilerplate language in the documents that create the condominium. Since the value and well being of the community depends on the upkeep and maintenance of each unit there must be insurance coverage in the case of a disaster. If you have a mortgage, your lender will require full insurance coverage.

You need to discuss insurance responsibility in detail with the condominium management before purchasing your unit. Review the rules and regulations and by laws with your attorney and with your insurance company before you purchase. There are other considerations in addition to insuring your property within the four outer walls of your unit. If a pipe should break in your bathroom and cause damage to units or common areas on a lower level you will be responsible for damages. You need to make certain you have that extended coverage.

Your monthly condo dues typically pay toward insurance for the common areas. See links for more information.