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Why is Condo insurance different from that of home insurance? As a homeowner, you own the property, the buildings and everything inside so you have a single policy that covers everything. But, in a condo building, you only own your unit and things inside it and the rest is communal. So, as a condo owner, your condo will have two different policies and coverage. It is really confusing so let us break it down for you.

All the external areas like the building’s structure and internal features like walls, roof or elevators fall under the jurisdiction of your condo association and must be covered under the condo association’s insurance policy. This is commonly called a “master insurance policy” or an HOA policy. The cost of this insurance is shared by all the condo owners and included in the recurring condo HOA fees of each unit owner. A condo association HOA policy can be of three types.

Be sure to carefully review the master insurance (or HOA) to determine what your condo insurance policy needs to cover. It will directly impact the amount of condo insurance you would have to purchase. You will have to buy more of your condominium insurance if your association has a “bare-walls” insurance policy than an “all-in” condo master policy.

The HO6 policy also referred to as “walls-in” insurance is an individual’s condo owner’s insurance policy and provides coverage for the inside of your condominium. It is not mandatory by law but if you have a mortgage your lender will require that you have an insurance policy for your condominium and similarly your condo association may also have some minimum requirements for coverage. Depending on the aspects of your condo association’s master policy your insurance may include coverage for the interior structure of the unit as well as your valuables and personal property. The cost of coverage will also vary on other factors like the size and value of your condo.

Like homeowners insurance, condo insurance also typically includes a few standard coverages to help protect your condo unit and property. Let us have a look at the different types of coverage and how they work.

This type of coverage largely protects the interior of your condo unit which includes interior walls, floor, sinks, built-in bookcases, tiles, and other permanent fixtures inside it. If your condo is completely destroyed or damaged due to a covered peril such as fire and vandalism your condo policy will pay up to the coverage limit of the policy purchased. Most people choose a policy that covers the amount it would cost to build a replica of it or the replacement cost value of the condo.

It is the core party of a condo insurance policy like a homeowners and renters insurance. It protects you and the people in the condo unit if someone is accidentally injured while visiting your condo. It may also help to cover the associated legal expenses and related damages in case you are sued whether you are actually on your property or not. If you do not have liability coverage you may be stuck paying out of your pocket for major expenses and can be financially devastating.

Like homeowners insurance, this coverage includes all the things you own within your unit like appliances, furniture, decorations, electronics and clothing and other items not affixed to the unit. It also includes stuff in a storage locker no matter where they are (in your condo unit or temporarily somewhere else). If they are damaged or stolen in a covered claim this will help you pay to replace or repair them. You can choose from different types of personal property coverage which determines how much your insurance policy will reimburse you after a covered loss. They include:

It is also sometimes called additional living expenses and is one of the least-known benefits of condo insurance, yet it could be extremely beneficial to a policyholder. In the event of a condo becoming inhabitable, it covers the cost of qualified expenses like expenses of staying in a hotel, cost of meals and in some cases additional travel commuting costs. It could either be a set amount per claim that a policyholder can use at their will or a certain amount every day for a set number of days.

It is also called special assessment coverage and is an optional coverage that you can add to your condo insurance policy. It covers situations when a claim under the Condo Association Insurance exceeds the policy limits and you and the rest of the condo unit holders are financially held responsible for the shared loss. (as long as it was a covered peril). For example, this coverage might cover the cost of damages from a fire in the lobby if it exceeds the money your Condo Association Insurance has available for repairs. This coverage will help you avoid paying out of your pocket.

Condo insurance does not cover damages related to floods, earthquakes or sinkholes. There are also some limitations to your coverage. The things you keep in your condo are covered, but you are only covered for major appliances like stoves, fridges, dishwashers, freezers and laundry machines in case of a theft.

Condo insurance is very affordable as compared to home insurance.

You can get the right insurance for your condo and your possessions by contacting one of our agents. We will help you choose the best-tailored policy for your needs by comparing rates from multiple insurance companies. Additionally, we will provide consultation on the various options and discounts available.

To get started, 888-888-9914 or click over to our quotes page and we will make the process simple.