In a shared building, two policies sit side by side: the building's shared contract and your own home insurance. Most of the uncertainty – and most of the "but surely the building's policy covers that!" comments you hear at claim time – comes from the boundary between the two. Let's look, from a resident's point of view, at who's responsible for what.
- Condominium insurance protects the SHARED property: structure, roof, stairwell, shared building services – as defined in the building's founding deed.
- Your own home insurance protects what's inside your flat: flooring and finishes, fitted furniture, contents – and your personal liability.
- Together, the two give you broad protection: neither replaces the other, and the exact boundary can vary slightly from building to building.
What does the building's policy protect?
The building's policy typically covers the building as a whole, though the weight of the cover falls on the shared property; how far it also extends to the individually owned flats – in scope and amount – is set out jointly by the condominium's policy and the founding deed, and it's worth asking the building manager for that information. Exactly what counts as shared and what as separate property is fixed in that particular building's founding deed – which is why the same type of damage can be treated differently in two different buildings. Our sister site covers this same boundary from the building's side: the boundary between shared and separate property on tarsashaz.biz (in Hungarian).
A practical example of the boundary: the vertical shared riser pipe is typically the building policy's territory, while the branch pipe inside your flat is already yours; the stairwell window is the building's, your balcony door is yours. It's worth asking the building manager what the building is insured for and for how much – it's also a good starting point for sizing your own policy.
What does your own home insurance protect?
Everything "inside" your flat: flooring and finishes, doors and windows, the fitted kitchen, the fixtures that serve your flat's purpose – and, of course, all your contents. This also includes personal liability cover: if damage starting in your flat – typically a burst pipe or a leaking washing machine – floods a neighbour, this is the cover that responds. The condominium's contract typically doesn't protect your contents or your liability.
The classic case: someone gets flooded
Is your ceiling leaking from above? It's best to report the claim to your own insurer first – via the claims line or online – and to notify the building manager too: depending on the source, either the neighbour's liability cover or the building's own policy may be involved. If it's your flat that's flooding the one below, your own liability cover is the key piece. Our neighbour water damage article covers the process from a resident's point of view; and when several parties each need to report something, it's worth working through it patiently and with documentation – see how to report a claim for that.
What should you set up on your own policy because of this?
Three things are worth setting up deliberately: the true value of the building elements inside your flat (reducing this on the basis of the shared policy is risky), the presence and limit of your liability cover, and the precise scope of the terms on water damage. If the building's policy is strong, that's good news – but when sizing your own policy, your own property is the yardstick. If you have questions: let's talk it through in 20 minutes.
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