Some Arizona condominium Associations purchase Bare Walls insurance policy as a master policy.  Bare walls insurance coverage is used for condominiums wherein there are some common areas, such as the entryway or exterior lights which are used by all residents of the building. Bare Walls insurance policies are purchased as master insurance policies by the Association and are outlined in the Associations Covenants, Conditions & Restrictions (CC&R’s).

Associations may purchase this very limited type of insurance policy to cover the bare minimum of shared building features.  The cost is usually covered by the upkeep fees charged to individual condo owners.

Owners of individual condo units must purchase their own insurance to cover damages to anything from within their own unit, such as cabinets, wiring, plumbing, vanities, sinks, tubs, toilets, showers, doors, and any improvements or remodeling.  Condo owners must also purchase insurance to insure personal items such as furniture, clothing and electronics.

The Bare Walls policy is frequently a problem because it covers so little.

This type of policy is against the law in many states, and recently was outlawed in Utah, but it is still legal in Arizona.

Instead of Bare Walls coverage, most condominium Associations purchase single entity coverage.  This type of policy covers all property, including individual units.  It does not, however, cover personal items or remodeling/improvements made to individual units.  Individual condo owners must still purchase their own coverage.

Most insurance agents just give a quote with every phone inquiry.  Without further investigation, it is impossible to know what the condo Association’s master policy already does/does not cover.

Make sure you have adequate insurance to cover all of your belongings.  When seeking condo insurance, ask your insurance agent what type of master policy your condo Association carries and what exactly it covers.  They can then explain to you what type of insurance you need to purchase and provide you with an accurate quote.

I am not an insurance agent.  Please verify insurance information with your insurance agent.

If you're looking to buy or sell residential real estate in the Valley of the Sun, please contact me.  I'd love to help!