Master Policies vs. Condo Coverage: What Every Owner Needs to Know

When it comes to condominiums, insurance can be a confusing and often overlooked aspect of ownership. At Craftech Restoration, we've seen firsthand how gaps in understanding and coverage can create major headaches for condo owners. Here's what you need to know to ensure you're fully protected.

Two Types of Insurance Policies

Most condominium insurance claims involve two distinct policies:

• The Master Policy This is held by the condo association and typically covers the structure of the building and shared areas, often referred to as "studs out." However, there are two critical points to keep in mind:
• Large Deductibles: Master policies often come with significant deductibles, sometimes as high as $25,000. These large deductibles mean that, in the event of damage, the condo owner may be required to cover a substantial portion of the repair costs before the master policy provides any assistance. This can create significant financial strain, especially in cases where damage costs fall just below or slightly over the deductible amount.
• Damage Thresholds: In many cases, the master policy doesn’t even kick in unless the damage exceeds a certain amount, often $25,000.

• The Condo Owner’s Policy This is the individual policy held by the condo owner, usually covering the interior of the unit, or "studs in." While this policy provides important protection, it is crucial to review it carefully for adequate coverage, including:
• Contents Coverage: Ensure that your personal belongings and furnishings are covered.
• Deductible Coordination: Verify that your coverage can handle any gaps created by the high deductibles of the master policy.
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The Risk of Coverage Gaps

A common scenario we encounter is a significant gap between the master policy’s deductible and the condo owner's coverage. For example, if the master policy has a $25,000 deductible and the owner's policy only covers up to $10,000, the owner could be left with a $15,000 shortfall. These gaps can lead to unexpected out-of-pocket expenses and major financial stress during an already challenging time.

Key Takeaways

1. Review Your Policies Regularly: Take time to understand the details of both the master policy and your individual condo policy.
2. Ask About Coverage Gaps: Work with your insurance agent to ensure your policy can bridge any potential gaps, especially regarding deductibles.
3. Don’t Forget Contents Coverage: Protect your personal belongings by ensuring you have adequate contents coverage.



At Craftech Restoration, we’re here to help you navigate the complexities of condo insurance and guide you through the restoration process if disaster strikes. Proper preparation can make all the difference, giving you peace of mind that you’re covered from all angles. Contact your Agent or Carrier to review your policies.