Eli5: how does insuring a condo work? Do you get home insurance? What happens if the roof needs to be replaced or other major repairs?

Question

Eli5: how does insuring a condo work? Do you get home insurance? What happens if the roof needs to be replaced or other major repairs?

In: 4

Answer 1

You get homeowners insurance that covers the interior of your unit and it’s contents — “drywall in” is sometimes the term you hear in reference to what owner is responsible for. The condo association also has insurance that protects the common elements like roof, hallways, lobby, elevators, etc. The association also collects monthly dues and sets aside a portion into reserves for use on larger capital projects like roof replacement, elevator overhauls/replacement, exterior tuck pointing, etc.