Condo insurance protects your belongings from being stolen or damaged, and also covers liability costs for guests who are hurt in your home.
Condo Insurance Key Takeaways
Condo insurance (also known as HO-6 Insurance) is designed to cover the things your condo association's primary insurance won't.
Condo insurance policies typically cover your personal property and pay out if someone injures you.
Condo insurance costs an average of $512 annually.
Condominium owners can usually count on their association to insure the common areas in the building. However, it will not cover personal property if they are damaged or stolen. In those cases, you will need condo insurance, also known as HO-6 insurance, to cover these and other possible disasters.
Why Do I Need Condo Insurance?
Condo insurance covers things your HOA doesn't. This includes replacing stolen items or repairing your unit after a catastrophe. Condo insurance provides liability coverage for your dog if he bites or injures someone in your home. Not all breeds of dogs are covered by all insurance companies.
What is HO-6 Insurance?
Another name for condo insurance is HO-6 insurance. This term refers only to one of many home insurance policies used in the industry. Renters, on the other hand, have HO-4 policies while homeowners are covered with HO-3 policies.
To insure condominiums and cooperatives, an HO-6 policy form can be used. Insurance policies for individuals are the same regardless of the differences in ownership between condominiums and co-ops.
Is Condo Insurance Required?
Condo insurance is required by mortgage lenders to protect their financial interests during the loan term. You might still be responsible even if your mortgage is paid off or you have the property for free. Many HOAs require this.
What is The Coverage of An Insurance Policy for a Condominium Association?
Many times, condo fees can be used to fund a master policy of insurance that covers certain liabilities and disasters. These could include:
Exterior damage to the building
Storm damage to the roof and outer siding, for example, would likely be covered.
Common areas
The master policy of your association generally covers damage to areas like the lobby, elevators, and tennis courts.
Common injuries
Imagine a visitor falls on an icy walkway just outside the front door of the building. Your HOA insurance will likely cover her costs if she gets hurt and files a suit.
What is Condo Insurance?
Condo insurance covers you personal property, living expenses, and damages in the event of a lawsuit. Your individual HO-6 insurance policy could also cover the interior fixtures and appliances of your unit, depending on what your condo association has in its master insurance policy.
Below is a list of 8 types of condo insurance coverage:
1. Personal Property
Personal property coverage Will replace furniture and other personal belongings in the event of theft or damage due to a listed disaster under your HO-6 policy. These "named perils", typically include fire, hail, and wind.
2. Additional Living Expenses and Loss of Use
Condo insurance can cover you for hotel bills or other expenses if you are unable to live in your condo due to a covered problem.
3. Medical Payments and Liability
Condo insurance can cover your liability costs in the event you are sued for negligence. It also pays for medical bills for anyone injured within your condo. You may also be covered for the injuries you cause to another person's property or pets.
4. Building or Dwelling Property
Depending on the master policy of your HOA, you may need to insure your interior with dwelling coverage. Also known as building property coverage. Check with your association before purchasing condo insurance. They will tell you which coverage type applies to your master policy.
5. All-inclusive Coverage or All-in Coverage
This option will allow your association to cover your entire unit, including any light fixtures and appliances, as well as any modifications you make. You don't likely need dwelling coverage if your HOA has all-inclusive coverage.
6. Coverage for a Single Entity
Single entity coverage is the same as all-in, except that it does not cover any additions or improvements to your condo. Only the original fixtures are covered. You may consider adding building property coverage to your policy if you have made significant improvements to your unit.
7. Coverage of the Barred Walls
The walls, floors, and ceilings of the unit are covered. However, it does not include any attachments such as carpets or light fixtures. These items will need to be covered under your condo policy. Condo policies can sometimes be called "walls in insurance" because they provide this type of coverage.
Your building property coverage is similar to personal property. It covers only specific disasters, such as fire and theft.
8. Loss Assessment
Each unit owner may need to contribute funds if the HOA exceeds its master policy's limits. This sum could be covered if you have condo insurance with loss assessment coverage. A master policy may also have a high deductible. The association might split the cost between all owners. If the condo is damaged, the individual owner may be responsible for the full deductible.
For more information on Condo Insurance with Richard Dean Insurance, click here for a break down of our services and what we offer. Or, to speak to an expert agent that can help save you money on a bundled policy, call us at this number: (941) 999-3131