If your home insurance is something you plan on changing this year, it is important to understand what the HOA’s master policy covers vs what your policy needs to cover.
There are two different types of coverages that may be in place within your HOA.
WALLS IN
The first policy is a known as “studs in” or “walls in”. This means that everything in your condo, other than personal items, are covered. The most common types of policies are called “studs out” or “walls out”. These policies cover everything outside of your home, like your driveway and roof, but not what’s inside, like your appliances or surfaces.
WALLS OUT
For example, if your HOA has a “walls out” policy and there is an electric fire in your home, you will be responsible for the damage. If a tree falls in a storm and knocks down your fence, however, the HOA’s insurance policy will cover the repairs.
Checking your HOA’s coverage before renewing your own will help keep you safe and more financially secure if, and when, an emergency strikes.