Some Condominium owners may be surprised to learn that the master insurance policy purchased by their association covers the interior of their unit too. What it does not cover within the unit is their personal contents and they should have their own policy to cover those. If the condominium is a second home they may find that they can add coverage for contents onto their existing homeowners policy as a rider.

New Hampshire RSA 356-B:43 requires that the unit owners association or the board of directors shall obtain a master casualty policy providing fire and extended coverage in an amount equal to the full replacement value of the structures within the condominium. Language specifying this should be included in the condominium instruments.

The requirement for the association to purchase this master policy has been in effect since 1977. The premium is part of your dues and insures that the building is fully insured. Imagine if it was not done this way and your neighbor had a fire inside their unit and had no insurance coverage to pay to repair the damages. That would affect all of the owners within the building.

It’s a good idea to periodically review your association declaration and by-laws to be sure that you know and understand everything that is in there. Sometimes information supplied by the board of directors turns out to be incorrect because they themselves do not understand the laws. Don’t be afraid to ask questions when you need more information or do not understand something.