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What is condo insurance?

Unlike a homeowners policy that covers the entire house, a condo policy only covers the interior of condo unit along with personal belongings, loss of use of the condo unit, as well as certain loss assessments and liability exposures.

Why do I need condo insurance?

Condos should have a master policy that covers the condo building, but that policy protects the homeowners association and board members, not each individual unit owner. It is therefore imperative that each unit owner carry a condo policy, also known as an HO-6 policy.

What are the benefits of condo insurance?

Condo insurance provides valuable protection against perils such as fire, theft and water damage, and if the resulting damage renders your condo uninhabitable, it will pay for a hotel or apartment while your condo is being repaired. In addition, there is coverage for certain special assessments, and if you were held responsible for injuries or damage to another unit, from a water leak for example.

What does condo insurance cover?

Below are just a few coverages, more can be found here.

  • Building Property (Dwelling) – Covers permanently attached property within your unit (walls, flooring, cabinetry, fixtures, etc.)
  • Personal Property – Covers your belongings, including furniture, electronics, clothing, kitchenware, etc.
  • Loss of Use – Covers additional living expenses (primarily a hotel or apartment) if your condo is rendered uninhabitable by a covered loss.
  • Liability – Protects you financially if held responsible for most injuries or property damage outside of a motor vehicle.
  • Loss Assessment – Typically helps pay special assessments after a loss that is covered by the association’s master policy, when that master policy has a large deductible or exceeds limits.
  • Earthquake – Separate earthquake policies are available.

How does my HOA’s master policy impact my coverage?

Many master policies are “walls-in”, meaning they cover the permanently attached property within the units. If that is the case, then the unit owner need only cover the master policy deductible. If earthquake is a concern, it is important to determine if the HOA carries an earthquake policy, and if so, the earthquake deductible.

How much does condo insurance cost?

Costs depend on factors such as location, credit, coverage carried, and other policies with the same insurer. Condo policies start at around $10 per month.

Reach out to Chris Elliott Insurance Agency!

Properly insuring a condo unit requires a deep understanding of both the policy on the unit and the master policy on the building, as one influences the other. Unlike many agencies, we take the time to research the policy on the building to prevent gaps or redundancies.