Two insurance policies coexist in every apartment building, and most owners have never seen them side by side. On one hand there is the condominium policy, paid monthly through the service charge and read by almost no one. On the other, each unit's individual policy, which many owners simply do not hold because they assume the building already covers everything. The boundary between the two is not intuitive and does not sit at your front door. When something happens, the argument about who responds begins, and the owner in the middle has usually either been paying twice for the same thing or was covered by nothing at all.
1. What the condominium policy insures
A comprehensive building policy covers the structure and the common areas: foundations, load bearing walls, roofs, lobby, stairs, plant room, lifts, tanks and pumps. It adds the condominium's third party liability, typically for falls in common areas or falling masonry, and cover for building staff. In a fire that destroys the building, that is the policy funding the rebuild of the structure. It is cover designed around the logic of shared property, which is exactly why it does not deal with what happens inside each unit.
2. Where the boundary actually sits
The practical rule is simple even if it has nuances: the condominium covers the structure and the common parts; from there on, improvements, finishes and all the contents of the unit are the owner's responsibility. Floors, wall coverings, bathroom and kitchen fittings, fitted furniture, internal doors, your own installations and of course everything movable: that is yours and it is not in the building policy. Also on your side is liability for damage originating inside your unit and affecting other units, which is the leading cause of disputes between neighbours.
3. The water case, the one that repeats most
A pipe bursts and the water runs down. If the leak comes from a shared main, the condominium responds. If it comes from an internal installation in your unit, you respond, even if you did nothing wrong. And repairing someone else's damage is not the only issue: your own ruined floors and furniture are only covered if you hold an individual policy including water damage. With building cover and no personal cover, the most frequent outcome is that the building is made whole while you pay out of pocket for both your loss and the neighbour's below.
4. Theft, fire inside the unit and electrical damage
The three events that most affect an individual flat sit almost entirely outside the condominium's scope. Theft inside a unit is not a building claim. A fire starting inside the flat does affect the structure, and there the building policy responds for the common part, but your contents, your finishes and your liability towards neighbours remain yours. And appliances burnt out by voltage surges, by far the most frequent claim in buildings with wiring problems, have nothing to do with condominium cover.
5. The two opposite mistakes that cost money
The first mistake is assuming the condominium covers everything and buying nothing: it is the most common one and leaves the unit fully exposed to the losses that actually occur. The second is the reverse: buying an individual policy with a building sum calculated as though you owned a detached house, duplicating structural cover you already pay for in the service charge. In a condominium, the building sum on your individual policy should cover improvements and finishes, not a full rebuild. Adjusting that number is one of the most direct ways to lower the cost of a policy without losing any real protection.
6. How to review it in fifteen minutes
Ask the building manager for a copy of the condominium policy and check three figures: the building sum insured, whether water damage is included, and the liability limit. That tells you what your service charge already covers. Then look at your own policy, if you have one, and confirm that the building sum reflects improvements rather than the full structure, that contents are up to date, and that you carry liability towards other units. That comparison, which almost nobody makes, is what reveals whether you are paying twice or leaving a gap wide open.
Conclusion
The building policy and your own do not compete, they complement each other, but only if someone has sat down and read both. Structure and common areas travel with the service charge; improvements, contents and your liability towards neighbours travel with yours. At Ayling Seguros we can review the condominium policy alongside yours and size your individual cover without duplicating what you already pay for.
Frequently asked questions
Does the building policy cover the inside of my flat?
No. It covers the structure and common areas of the building plus the condominium's liability. Improvements, finishes and contents of each unit are the responsibility of the owner or occupier.
If a leak damages the flat below, who pays?
It depends on the source. If the leak comes from a shared main the condominium responds; if it comes from an internal installation in the unit, the owner or occupier of that unit responds.
What building sum belongs on an individual flat policy?
One that covers improvements, finishes and your own installations, not a full rebuild, which is already contemplated in the condominium policy. Quoting on the flat's full value means paying twice for the same thing.
Is theft inside my unit covered by the building policy?
No. Theft inside a unit is not a building claim and is only covered by an individual policy including contents theft cover.
How do I find out what my building's policy covers?
Ask the manager for a copy and check the building sum insured, whether water damage is included, and the liability limit. Those three figures are enough to know what you still need to cover yourself.
Is your flat covered where the building policy stops?
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