If you have purchased a condo, and carry a mortgage the bank will require you to insurance it and protect its investment in your home. You may, however, need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building like the lobby.

A condo policy typically covers you for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft or other disaster listed in your policy along with liability protection.