What you need to insure
What you own, and therefore need to insure, is the biggest difference between the homeowners insurance and condo insurance. With a house, you own it all – the structure and the land. With a condo, you own portions of the condo building (studs in). Common areas like the roof and hallways are owned by the condo association. It’s important to know, though, there could be times when you’re asked to pay for damage outside your unit.
Loss assessment coverage protects condo owners when there’s a larger, more significant claim involving the building or its common areas. For example, the building experiences wind damage. If the cost of damage exceeds the association’s master policy then you and the other condo owners may be responsible for paying the difference, and the condo association may have owners split the deductible. Loss assessment coverage can usually cover this cost, which helps prevent a personal financial strain due to unexpected events.