What type of insurance do I need for my condo?
As a condo owner, you may be wondering what type of insurance do you need to cover your unit along with your contents.
Unlike a homeowner’s policy, a condo owner’s policy can vary in coverage.
As a condo owner, your unit is usually covered by two different insurance policies. A condo association master policy is also known as a homeowner’s association policy (HOA) and an HO-6 Condo unit owners policy.
Homeowner’s Association Policy (HOA)
A homeowner’s association (HOA) is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents.
Anyone that buys a property in an HOA shall be prepared to pay association dues known as HOA fees.
These fees will be responsible for the shared maintenance along with paying for the master insurance policy.
An HOA’s master insurance policy can vary based on the individual associations and its bylaws. Most are set up to cover the originally built structure. Any updates (betterments and improvements) to the interior walls, flooring, and fixtures would fall under the responsibility of the individual unit owner.
Condo Unit Owners Policy (HO6)
An HO-6 condo policy covers the individual’s owner’s personal property, liability protection, and specific coverage of improvements to the owner’s unit.
Condo Insurance is important to have though since your association’s policy will not cover your belongings or provide you with personal liability coverage if someone is injured inside of your residence.
Your condo insurance should also include loss assessment coverage to cover your portion of damages to building common areas.
All condo owner’s policies are automatically rated on a named perils basis. It is important to add an All Risk Building coverage endorsement to your policy. This gives you comparable coverage to a standard homeowner’s policy.
Outside of the loss assessment coverage and the All Risk endorsement, other typical endorsements you need on your condo policy are:
- Replacement Cost Contents
- Water & Sewer Back up
- Identity Fraud
How do I know I have the right coverage
Condo policies allow you the flexibility to choose the coverage limits you want for both building coverage and personal property coverage. The hardest part to figure out, is exactly what your condo associations master policy covers and what you are responsible for individually.
As we mentioned, every association bylaws can be different causing the master policy to have different coverages.
Before purchasing your condo or during the process make sure you discuss with the association board members along with your insurance agent to review what coverage is need so you cover all potential gaps.
If you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.
