My washing machine sprang a leak, and the water ran onto my expensive carpeting, damaging a large section in the hallway. I am told it will cost $2,000 to repair it. However, the condominium corporation says there is a deductible of $2,500 on the policy that it carries. That's more than the cost of the repairs! I also have a condominium unit owner's policy that has a $500 deductible. Which policy pays for what? -- Drained and Stained

Dear Drained:

I can understand why you're feeling swamped! Condominium units are tricky when it comes to insurance, because, as you know, there are usually two types of policies involved: the condominium corporation's master policy and the condominium unit owner's policy.

The condominium corporation's policy covers all of the common property - floors, stairs, elevators, public hallways, parking garages, pools, landscaping - and all of the units, including STANDARD fixtures like kitchen counters and cabinets and, yes, floor coverings. As you mentioned, this coverage is subject to a deductible (the portion of the claim that you have to pay).

Your own unit owner's policy insures your personal property, as well as any upgrades that may have been made to your unit.

This is where it gets complicated! If an upgraded feature -- like your carpeting -- was damaged, both policies could come into play.

The condominium corporation's policy would cover up to the amount of the standard floor covering, while your unit owner's policy would cover the difference in cost between the standard and the upgraded carpeting. You would have to pay the deductible on both the policy obtained by the condominium corporation and your unit owner's policy. In this case, however, the deductible on the condominium corporation's policy is too high for that coverage to apply.

But the good news is that your policy has additional coverage that protects you against losses that aren't covered under the condominium corporation's policy -- like the $2,500 deductible. That's just one of the extra features that is normally included in policies that have been specially designed for condominium unit owners. Some condo unit owners make the mistake of buying a tenant's insurance package instead -- it's not the same!

So thanks to your condominium unit owner's policy, your damage will be covered. You just have to foot the bill for the deductible on that policy -- in your case, $500. That's a lot better than $2,000!

Be aware, however, that every condominium development has unique features that may alter the way in which the master policy operates. So don't wait until you're in hot water to find out which policy covers what.

Note: Remember, policies vary, so when in doubt, consult your insurance representative.