Garage condo insurance

Do I need my own insurance if the association has a master policy?

Yes. The master policy protects the association's building. It does not cover your contents, your vehicles, your liability inside your unit, or (in most communities) the improvements you added. It also does not pay your share when the association passes its deductible or a special assessment back to owners. A unit-owner policy fills those gaps, and many declarations require owners to carry one.

Does homeowners insurance cover a garage condo?

Usually not in full. A homeowners policy is written around your house. It may extend some coverage to belongings you keep elsewhere, but it generally does not cover a garage condo unit you own separately, the improvements in it, or liability for an injury at a property that is not listed on the policy. Business property and vehicles are limited or excluded either way. Ask your agent, in writing, exactly what applies at the garage condo address.

Can I buy an HO-6 condo policy for a garage condo?

Rarely. HO-6 is the standard policy for a condo unit, but it is written for units people live in. Most garage condos are commercial or non-residential condominiums, so most carriers will not write one. Owners get sent to a commercial condominium unit-owners policy or a business owners policy (BOP). Those can do the job, but they are priced and built for businesses, and owners often end up paying for coverage a hobby garage does not need. That gap is why we are building this.

Who insures my mezzanine, lift, epoxy floor and other upgrades?

In most garage condo communities, you do. Anything you or a prior owner added is an improvement or betterment, and unless the master policy is all-in, it is yours to insure. Garage condo build-outs are often worth more than the bare unit: a steel mezzanine, a four-post lift, a bathroom and a finished lounge add up fast. Set the limit at what it would cost to rebuild today, not what you paid, and update it when you add something.

Are the cars, RVs and boats in my garage condo covered?

Not by any condo policy. Property policies exclude licensed vehicles. Each car, motorcycle, RV or boat needs its own auto, collector-car, RV or watercraft policy. For collector cars, an agreed value policy pays a set amount after a total loss rather than depreciated value. Collector-car insurers generally want vehicles kept in an enclosed, secure building, which a garage condo usually satisfies, and some offer credits for gated, alarmed or sprinklered storage. Tell your vehicle insurer the garage condo address.

Are my tools, parts and memorabilia covered?

Under a unit-owner policy, yes, as contents, up to your limit and subject to the policy's sub-limits. High-value items (a tool collection, rare parts, signs, art, memorabilia) may need to be scheduled individually. Keep a photo inventory with purchase dates and prices, store a copy off-site, and know that used project parts may be valued at little more than salvage.

What is loss assessment coverage, and who pays the master policy deductible?

When a covered loss hits the building, the association pays its deductible and anything above its limits, then usually bills owners. Many declarations let the association charge the deductible to the owner whose unit was damaged. Loss assessment coverage pays your share. Garage condo associations are small, with few owners to split a bill, and wind and hail deductibles are often a percentage of building value, so this coverage matters more here than in a large residential condo.

Do I need liability insurance for a garage condo?

Yes. If a friend falls off your mezzanine, or a fire or water leak that starts in your unit damages the unit next door, the claim comes to you, not the association. Your unit-owner policy should carry liability. If you have a personal umbrella policy, confirm it lists the garage condo, because an umbrella only sits on top of an underlying policy.

Does using my garage condo for a business change my insurance?

Yes. Detailing, restoration work, storing vehicles for others or regular customer traffic is business use. Tell your insurer, because an undisclosed business can void a claim, and you may need general liability and business property coverage. Check your declaration and rules too: many communities restrict commercial use.

Is flood or earthquake damage covered?

Not by standard master or unit-owner policies. Both are bought separately, by the association for the building and by you for your improvements and contents. If your community sits in a flood zone or a seismic area, ask the association what it carries before you decide what to buy.

What should I ask my garage condo association about insurance?

• The insurance section of the declaration and bylaws
• The current certificate of insurance (limits, carrier, deductible)
• The master policy type: bare walls, single entity or all-in
• The property deductible, including any separate wind or hail deductible
• How a deductible or uncovered loss is charged back to owners
• Whether flood or earthquake coverage is carried on the building
• Whether the association carries directors and officers (D&O) coverage
• Any special assessments in the last five years