What does 'unit owners insurance' specifically cover?

Unit owners insurance, also known as condo insurance, specifically covers personal property and liability for condo owners. This type of insurance is designed to protect individual unit owners from financial losses related to their personal belongings, such as furniture, electronics, and clothing, as well as provide liability coverage in case someone is injured within the unit or if the unit owner is responsible for damage to another unit or common area.

Although the building structure and common areas are typically covered by the condo association's master policy, unit owners insurance fills the gap by covering what the master policy does not. It does not cover the lender's interests in the unit or provide coverage for natural disasters unless specifically included as part of the policy. Therefore, selecting unit owners insurance is essential for condo owners to ensure they have comprehensive protection for their individual assets and liabilities.