If you are purchasing a condo, you may not think that you should buy condo insurance. Condo complexes usually have a master insurance policy, but the coverage is really limited. It is important for you to evaluate what master insurance policies cover and the additional protection of individual MA condo insurance policies will provide you as a home owner. This blog covers information on condo insurance in MA.

What Is Master Insurance

Master insurance policies for condos normally cover the structure and common elements (i.e. halls, elevators, and the siding). It may not insure unit-specific items such as HVAC, unit appliances, kitchen cabinets, etc. More importantly, it will not insure personal belongings such as appliances, jewelry, and clothing. Policies vary, so be sure to ask for a copy of the master insurance policy for your condo complex and determine its scope.

What Individual MA Condo Insurance Policies Cover

MA personal condo insurance does not cover the infrastructure of the building, since that is addressed by the master policy, but is in every other way like normal homeowners insurance. It normally insures against burglary, fire, some types of weather damage, vandalism, debris, and impact involving automobiles or aircraft. It can also include personal liability coverage which applies if visitors get injured in your home or if you damage someone else’s home. A low amount of value is normally offered for personal assets. Enhanced coverage may be added for jewelry, equipment, collectible items, and specific renovations (such as a luxury kitchens or appliances).

Cost of Condo Insurance and Where to Begin

A majority of the time, MA condo insurance policies are actually lower cost than typical homeowners insurance. Be sure to contact your insurance company for advice on how much coverage you need. Your agent may want to know the features and amenities of your unit plus dollar value of coverage necessary for personal assets. He/she may ask for the master insurance policy to confirm what is included. Completing this process will confirm that you have enough coverage based on your needs.

 

First time buyers often ask about owners title insurance, what it is, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is traditionally optional. Buyers should consider the features and decide for themselves on whether the expense is worthwhile given the costs and coverage. The following are Massachusetts owners title insurance details.

Title Searches Are Not Perfect

Before closing, a title search is always performed by a title company. This determines that no other party has a right to the home (based on records on file) and that the title is available to be transferred to a new buyer. The title search is not fool proof and may not identify hidden risks in the title. Owners title insurance will protect you against title issues and the legal fees associated with protecting your rights to home.

Owners Title Insurance Coverage

Owners title insurance is a single charge at closing that will remain valid for the entire time that you retain ownership of the property. You can buy it at a later time, but it is normally less costly when bought at closing. The fee is based on the amount of the loan.

Massachusetts Owners Title Insurance Details and Coverage

Owners title insurance typical coverage includes…

• Misrepresentation related to the execution of past title transfers.
• Pressure on a seller or executor (of a will).
• False impersonation by those alleging to be owners of a home.
• Incorrect marital status of a seller.
• Mental Incapacity of grantors.
• Conveyance of a minor.
• Non-delivery of critical paperwork.
• Unsatisfied claims not mentioned inthe records.
• Mis-indexing at Registry of Deeds.
• Clerical glitches in recording legal documentation.
• Delivery of deeds after the death of a seller.
• Transfers executed under unauthorized powers of attorney.

Some policies may include…

• undisclosed heirs.
• Wills not properly probated.
• Incorrect interpretation of trusts.
• Birth of heirs after the date of a will.
• Incorrect property surveys.
• Inaccurate legal descriptions.
• Confusion fomr similar names.

The above information is merely an introduction. Consult a local title company for current Massachusetts owners title insurance details and pricing, as they typically vary based on the provider.