Condo Insurance

A condominium is one of the most valuable possessions, and as such, deserves the care and protection accorded to your other properties. Condo insurance is ideal for securing your asset, whether buying a condominium as a vacation or starter home. Generally, condo insurance provides almost the same features and benefits as conventional homeowners insurance.

However, unlike homeowners insurance, a condo insurance policy functions jointly with extra coverage issued by a homeowners association. Below is an expert guide on condominium insurance and its importance.

What Is Condo Insurance, and Why Do I Need It?

Also known as an HO-6 policy, condo insurance covers financial losses or repair costs that arise from claims against the owner and damages to the condo. Condo insurance HO-6 policies are also referred to as walls-in coverage. This is because they secure your unit, while the policy acquired by the condo's complex management covers the whole building's common areas.

<b>Why You Need Condo Insurance Coverage</b>

Why You Need Condo Insurance Coverage

Below are the benefits of having condo insurance:

  • Liability coverage. You are liable for any property damage or bodily injury if an accident happens in your condo due to your fault.
  • Loss of use due to covered losses
  • Covering personal belongings
  • It covers the interior. The building's association is responsible for the condo's external physical structure. However, as a condo owner, it is your responsibility to take care of the interior.
  • It covers the exterior walls. Just like your condo's interior, its external walls are also your responsibility to take care of.
  • Expenses incurred by cleaning up after a water damage

What Does a Typical Condo Policy Cover?

As previously mentioned, condominium insurance is like homeowners insurance, but with a few differences. They both cover the same perils such as hail, windstorms, fire, theft, and explosion. Typically, condominium insurance policies have a few types of coverages, including:

1. Building Property
Building property coverage covers damages that happen to your condo's structure, including fixtures and walls. However, before buying this coverage, determine if your HOA insurance covers structural damages to specific units.

2. Personal Liability
It covers legal fees and sometimes damages if a party sustains an injury in your condo and sues you. These legal fees include attorney fees, court settlements, and court fees.

3. Personal Property
It covers damages to your personal belongings, including furniture, fixtures, and electronics, if these items get damaged or stolen due to specific perils covered by the policy. Your condo insurance may cover all of your personal belongings or only some of them.

4. Guest Medical Payment
If a guest sustains an injury while in your condominium, this coverage helps pay their medical expenses.

5. Loss of Use Coverage
This is also known as additional living expense coverage. Loss of use coverage helps cater to your living expenses if you temporarily live in the condo following a covered loss. A covered loss may include theft, vandalism, or damage by specific perils. The coverage may pay the difference between your everyday expenses and relocation costs.

Does My Condo Insurance Cover Theft?

Typical homeowners policies include condo insurance coverage for your personal property. Generally, loss due to theft is included under personal property protection. Theft is one of the most insured losses in homes, including condos. Therefore, expect to have your condo insurance coverage to include theft.

Do I Need Condo Liability Coverage?

Condo insurance is not a mandatory requirement by law. However, some condominium homeowners associations typically have minimum coverage requirements, mainly for liability. Additionally, lenders or banks may require a condo insurance policy if you have a mortgage on your condo. Though not as mandatory as homeowners, condo insurance is equally important. Therefore, you should at least have liability coverage to secure yourself from heavy financial responsibility.

Bottom Line

While condo insurance shares feature with homeowners insurance, there are notable differences. Condo insurance covers your specific unit, whereas the HOA insurance covers the entire property/building. There are several condo insurance policy providers in the market, each with unique features and benefits.

Finding the best providers requires due diligence and knowledge of the market. For the best results, it is advisable to avoid navigating the process alone. Work with an insurance professional at Theiss Agency to help you shop around and ensure a high-quality condo insurance policy provider protects your condo.

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