Condominium insurance typically combines two layers: master coverage for common property and separate coverage for the unit owner’s personal property.
Insurers must know whether a policy is for the association or the individual unit because replacement standards, deductibles, and coverage limits differ.
Practical structure
Common-area losses are usually handled under association-level coverage. Individual unit contents and interior upgrades are typically covered under the unit owner policy, not the master policy.
Claims and valuation
Claims handling depends on whether the loss affected shared structure or personal property. Misclassification can create delay, especially when both the condo board and the owner both expect the same payment.