Do you know that many condo owners have absolutely no idea what's included in their home insurance coverage? That's because they haven't taken the time to find out what their condo association covers-and, by default, what they're responsible for. The bottom line is that homeowners insurance is a vital part of condo ownership, and you can't count on your condo association to make sure you're protected.

Yes, most (if not all) condo associations have homeowners insurance policies for their properties. These policies protect them from damages to the exterior structure of the building that could cost a fortune to repair, damages to the grounds courtesy of thunderstorms, drunk drivers and other natural and unnatural disasters and damages to the main lobby. That's it. Their insurance coverage only goes as far as their personal investment does-and it stops at the hamster sized crawl space between the exterior and interior walls of your condo.

Where does that leave you as a condo owner? Out in the cold if the damages happened to be to your possessions or the inside of your unit. Your condo association's homeowners insurance policy offers you absolutely no protection against theft, interior water or fire damage, personal liability if someone takes a tumble down your stairs and decides to sue or if you, your children or your pets cause any damages to the common areas of your condominium.

If you do the math, these losses and damages can really add up. The average condo costs over $350,000, and condos in NYC and other major urban centers often sell for a cool million or higher. That's a lot of money to lose if your unit happens to burn to the ground and you decided not to buy a homeowners insurance policy. Not only are you going to be left holding the bag on a $300,000+ mortgage belonging to a property you don't even technically own anymore, you also now have to find a new place to live.

Then there are the losses you're going to suffer in terms of personal possessions. How much do you think all the "stuff" in your condo is worth? Don't forget to include your stereo system, your cell phones, your computers (including laptops, if you didn't grab them on the way out), televisions, jewelry, designer clothing, exercise equipment….the list goes on and on, and the number's probably going to be pretty high before it's all said and done. That's not a loss you want to have to pay for out of pocket when the solution is sitting there staring you in the face.

The average homeowners insurance policy costs less than $1,000 a year. You're going to spend more than that in groceries and dining out before the end of this year. Less than $1,000 a year to prevent you from complete financial ruin if something happens to your condo and you didn't take the time to look beyond your condo association's homeowners policy. Homeowners insurance is an essential part of every standard condo deal, regardless of where in the country it's located, and that includes yours.