Hawaii Real Estate State Practice Exam

Individual condo unit owners indeed have the option to insure their units separately, which is a common practice in condominium ownership. This insurance typically covers the interior aspects of the unit, such as personal property, improvements, and liability.

Unlike single-family homes, where the owner has complete control over the property and its insurance, condominium owners share common areas and may rely on the association's master policy for the exterior structure and shared facilities. However, that master policy usually does not cover the individual units' contents or specific improvements made by unit owners. Therefore, it's essential for each owner to obtain their own insurance policy, often referred to as an HO-6 policy, which is specially designed for condo owners.

While there may be varying laws and policies regarding insurance based on unique situations or specific condominium associations, the general rule is that individual owners can and should insure their units separately to ensure comprehensive protection of their personal belongings and interior improvements.