For homeowners, a single insurance policy covers both the dwelling and contents. Renters need to only worry about contents. But condo owners need one insurance policy to cover the common areas and building from the outside to the bare walls, then a second policy to cover not only contents, but also wall and floor coverings, cabinetry, fixtures, moldings and the other amenities that give a building character and utility.

The first policy, a “bare walls policy,” usually is purchased through a homeowners association and protects the common property, liability, and the physical building to the interior walls. Should a storm tear off the roof or someone slip on the front steps, for example, those would be covered by the master policy, says Kim Cary, senior general adjuster at Quality Claims Management Corp., San Diego. Quality Claims provides hazard claim recovery services to investors, mortgage servicers, homeowners and businesses.

But should fire strike the condo, the master policy would pay for rebuilding the unit to the drywall and subfloor but would not pay for flooring, paint, fixtures, cabinets, plumbing fixtures or any contents. That falls under the owner's second policy.

Cary recommends that any condo policy cover $100 per square foot for just the fixtures, then include monies for contents, living expenses and general liability coverage. Many policies have set limits on certain categories (like jewelry), so make sure that antiques, rare books, expensive jewelry and other pricey items you might have are covered.

She also says you should realize that you may have more money invested in contents than you believe. “I have a client who had a major fire that damaged a garage and house. The policy was $20,000 for everything—including fixtures,” Cary said. “The loss, however, was $35,000.”

You should understand what’s covered—and what’s not—by the condo policy and consider extra riders to cover earthquakes, floods, wildfires or other natural disasters. Quality Claims works with the Red Cross and other community agencies at public preparedness gatherings to review existing insurance policies to ensure the owner has adequate coverage.

“With all of the wildfires in California, many people are under insured,” Cary says. “I don’t know any other way to get the word out (about adequate coverage) than to offer our services to help property owners have peace of mind.”

And once you have coverage, review your policy annually to ensure that it still meets your needs. Anything an agent tells you will be covered in the event of a loss means nothing if it isn’t documented in the insurance paperwork.

“I’ve seen many people going the cheap route and getting burned,” Cary says. “You have to review your policy and choose the best product that you can afford that will meet your needs.”