If you own a condominium, there are two types of insurance worth understanding.

The first is your individual condo unit’s insurance, which you pay for and are solely responsible for maintaining.

The second is the master insurance policy, which covers the entire condo complex and its common areas. This policy is typically carried by the condo complex owner or, more commonly, by the condo owners’ association (COA).

Who Pays the Premiums for the Condo Complex’s Master Insurance Policy?

The cost of the master insurance policy is generally covered through the condominium owners’ association fees that you and other residents pay.

How Do I Know If the Master Insurance Policy Is Adequate?

It’s a good idea to get a copy of the master insurance policy and read it carefully, ideally before a problem arises. Your agent at Birmingham Insurance Agency LLC in Birmingham, AL, can help you understand it.

Your agent can offer recommendations and help identify any risks that may not be adequately covered.

What Happens If the Premiums Are Not Paid?

If your COA fails to make timely premium payments on the master insurance policy, the entire building and all condo owners could be at risk if the policy is canceled. It’s a smart practice to periodically confirm that premiums are being paid on time.

The Financial Strength of the Insurance Company

Another important factor is the financial strength of the insurance company underwriting the master policy. You’ll want that carrier to be financially strong enough to pay out claims if something happens. Ask your agent to look into this as well.

Reach out to us at Birmingham Insurance Agency LLC in Birmingham, AL, for all your condo insurance needs.

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