Condo owners in Muskegon, MI, understand the importance of having insurance. A winter storm can cause power outages, burst pipes, and severe damage throughout your home. Tornadoes can tear through neighborhoods, destroying pools, tennis courts, and playgrounds. This often raises the question: who is responsible for the cost of the damaged amenities?

Personal Policy Coverage

Your personal condo insurance policy typically does not cover shared amenities, such as a dog park or playground. Instead, it provides coverage for your property and personal belongings. This may include damage to your condo’s structure or items inside, such as appliances.

Master Policy

Shared amenities, such as a community pool or the building’s roof, are usually overseen by a Homeowner’s Association (HOA) or Condo Association. These organizations are responsible for obtaining a master policy that covers shared assets. The master policy ensures that common areas and shared structural components are protected.

The Deductible

While the master policy typically covers shared amenities, the deductible must still be paid. Some HOAs require all residents to contribute an equal amount toward the deductible, while others use HOA fees to cover it. In rare cases, some personal condo insurance policies may help cover the master policy deductible, but this depends on the insurer. Agents at Janis-Shunta Insurance can help you understand what’s included in your policy.

Covered Events

Every insurance policy, including the master policy, specifies a list of covered perils. These often include certain natural disasters, vandalism, theft, wind damage, and lightning damage. However, specific events, such as tornadoes or floods, are often excluded. In these situations, a personal policy would still not cover the damage.

We understand that navigating how personal and master policies work together can be confusing. There are several factors that insurance companies consider, but our agents are here to make it easy to understand. Contact us at Janis-Shunta Insurance today to learn more. We proudly serve the Muskegon, MI, area.