Condominium owners in Florida are in a unique situation. The homeowner's association (HOA) has a master policy that covers the building. It is a common misunderstanding among owners that this insurance covers them if they have a claim. In reality, your HOA's insurance covers the building, commonly owned property, and liability insurance for the association. In most cases, coverage excludes all property inside the exterior walls. This means that each owner is responsible for the interior walls and possibly for fixtures, which can include appliances and personal property (liability exposures).
Because the vast majority of condominium buildings in Florida are rather old, buyers often upgrade their units. If you did not insure the improvements and the unit were destroyed, it would be under-insured.
Condominium insurance (often simply called condo insurance) covers both property and liability. Condo insurance is a comprehensive policy that protects your home, personal property, and you from personal liability. It is designed to pay for damages to your home and its contents. And, it can also protect you from financial liability if someone is injured in your unit. A Florida condo insurance policy also protects you and your possessions when you are away from home; effectively extending to all of your belongings no matter where you are.