What is Condo Insurance?
Condo insurance provides coverage for the inside of your condominium (drywall, wallpaper, paneling, flooring, carpeting, or built-in cabinets); the external areas fall under the jurisdiction of your condo association and must be covered under the association’s insurance policy. Depending upon the specifics of your condominium association’s master policy, your condo insurance needs may include coverage for:
- The interior walls
- Your appliances
- Your personal property and valuables
Some condo “Master Policies” provide all-in coverage. This means the entire building, including your unit, are covered. Check your condos Master Policy and find our if it covers your individual unit. Even if your building Master Policy provides some coverage for your unit, most condo owners still like to take out some dwelling coverage for their specific unit, often around $25,000. This is due to master policy limits, high deductibles, and condo document discrepancies.
Personal Property Coverage protects your personal belongings against damage and loss, including from theft fire, and even smoke which can be quite destructive. Your contents may provide actual cash value reimbursement for your items, or, for a slightly higher premium, may cover your full replacement cost. Your personal property is not covered by a condo master policy, and you should protect it. Unlike dwelling coverage, where the building policy might provide some coverage, your personal property is at risk. Personal property includes everything you own in your home. Furniture, TVs, computers, rugs, clothing, books, cookware, etc. Everything that is not attached to your condo is personal property and it should be insured.
Loss of Use
Loss of Use Coverage will insure you for temporary housing expenses such as an apartment rental.
In addition to covering your belongings in the event of a loss, your condo insurance also protects you against liability claims if you are responsible for another person’s injury or property damage, or you have legal fees to pay due to a lawsuit. This will cover you against lawsuits, legal expenses, and medical costs if you are legally responsible for injury or property damage to others. We recommend you carry at least $500,000.
HO-6 policies can also provide coverage for assessments applied an individual unit due to a direct loss to the condominium. The loss must be a “peril” covered under the unit owner’s individual policy, not be levied by a governmental agency, and not be related to earthquake damage.