What are bare walls-in, single entity, and all-in condo association insurance policies?
Although it isn’t the main focus of condo association insurance, some policies also offer extensive coverage for in-unit features. Policies can be categorized into three groups based on how much they cover within individual condo units:
- Bare Walls-In Policies: Tend to cover only the most basic components of units, such as their walls, plumbing and electrical
- Single Entity Policies: Tend to cover basic components and standard features, such as cupboards, counters, fireplaces (if standard) and flooring
- Modified Single Entity Policies: Tend to cover basic components, standard features and optional features, such as granite countertops and all hardwood flooring
Modified single entity policies are also called all-in policies, on account of how much they cover.
Which category condo associations should look at depends on the preferences of their individual owners. Some associations may have owners who’d prefer to keep premiums low with a bare walls-in policy. Other associations may have owners who want robust protection that includes upgraded features in their units, and still, other unit owners might prefer a compromise between minimal and extensive protection.
A knowledgeable insurance agent can help association boards think through which type of policy would serve their condo owners the best, and then the agent can help boards compare different policy options from within the chosen category.
How much are premiums for condo master policies?
Premiums for condo master policies are based on a lot of factors, and thus can vary dramatically. The size of a condominium complex, its age and construction of it, the number of individual condo units, and the common features of a property are merely some factors that can influence the cost.
An independent insurance agent can help associations compare rates of policies that meet their coverage requirements.