What’s the Difference Between Condo Insurance and the Condo Corporation’s Policy?

If you own a condominium, you’re covered by two separate insurance policies: one held by your condo corporation and one you’re responsible for yourself. But these policies don’t overlap. They complement each other, each protecting different parts of the property.

This matters when you’re trying to file a claim or facing a special assessment. You might think about this the next time there’s damage inside your unit or when your building needs major repairs.

The Condo Corporation’s Master Policy

The condo board is responsible for the shared structure of the building and common areas. Their insurance policy, known as the master policy, typically includes:

The building’s frame, roof, and exterior walls
Covers the main structure of the building itself, including foundation, exterior surfaces, and roofing.
Common areas like hallways, elevators, and lobbies
Protects spaces shared by all unit owners, including amenities like fitness rooms, meeting areas, and entranceways.
Shared systems such as plumbing, electrical, and HVAC (up to where they enter your unit)
Covers infrastructure that services the building as a whole, but generally stops at the point it enters your private unit.
Liability for accidents that happen in common areas
Provides legal and financial coverage if someone is injured or property is damaged in shared areas overseen by the board.

It’s funded through your monthly condo fees and protects the collective interest of all unit owners.

Your Personal Condo Insurance

Your condo insurance covers the areas not included in the building’s master policy—primarily what’s inside your unit. This includes:

Your personal belongings
Includes everything you own inside the unit such as electronics, clothing, furniture, décor, and kitchenware.
Renovations or upgrades you’ve made to the unit
Covers improvements like hardwood floors, upgraded countertops, new light fixtures, or high-end cabinetry that go beyond the original builder-grade finishes.
Your personal liability if someone is injured inside your home
Offers legal and medical protection if a guest trips, falls, or suffers injury while in your unit.
Loss assessment coverage for shared repair costs passed on by the condo board
Helps pay your portion if the condo board issues a special assessment to cover a building-wide claim or deductible not fully covered by the master policy.
Additional living expenses if you need to temporarily relocate
Covers hotel bills, meals, and basic living expenses if your unit becomes uninhabitable due to a covered loss.

Responsibility	Covered by Master Policy	Covered by Your Policy
Exterior walls and roof	Yes	No
Unit flooring or upgrades	No	Yes
Personal belongings	No	Yes
Shared area maintenance	Yes	No
Your guests' injuries	No	Yes (liability coverage)
Damage from inside your unit	Sometimes (if structural)	Often (especially water or fire)

Note: Not all master policies are the same. Some cover original unit features like basic flooring and fixtures, while others stop at the bare concrete walls. Always check your condo’s bylaws or ask for a copy of the master policy before purchasing your own.

Why the Division Matters

Understanding the line between the two policies helps you avoid gaps in coverage. If you assume the building policy protects your furniture, appliances, or renovations, you could face major out-of-pocket losses after a fire or flood. It also helps during claims. When something goes wrong, knowing which policy to contact first—yours or the condo’s—can speed up the process and reduce confusion.

Tip: Check whether your condo corporation’s policy has a high deductible. If so, your own condo policy should include loss assessment protection to cover your share if the board passes that cost on to unit owners.

A Combined Shield for Complete Protection