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condo insurance
Condo Insurance

Condo Insurance

condo insurance quote

Buying any real estate is one of the biggest investments in life. In a Condo or a co-op society, you experience community living with many extras due to the association. However, you should not rely on the condo association to provide you all the coverage you need to protect your investment. Read the condo master policy carefully, and then with our help, design a customized Condo insurance policy to fit your need.

What is Condo Insurance?
condo insurance

condo insurance

Condo insurance is coverage that protects you against losses and repair costs for a condominium. Condo insurance covers theft, fire damage, vandalism, water damage, etc.

Condos have unique insurance needs; they are a great alternative to renting an apartment or owning a single-family home.

How does Condo Insurance work?
geico condo insurance

geico condo insurance

If you have a lender for your loan on your Condo, they will mandate an HO-6 policy. Each condo or homeowners association can have certain required coverages and stipulations in their by-laws. Even if there are no requirements and your Condo is paid in full, it is still advisable to have full condo insurance coverage because this could be your biggest and most valuable asset, and it needs to be protected.

Condo corporation or society provides insurance covering the main structure and common areas. Still, items inside the unit are not covered, including your belongings. Things like a unit improvement, loss assessment, your building coverage are unlikely to be covered in the building insurance provided by the condo insurance. You need condo insurance to protect the belongings inside and other renovations.

Having a policy dedicated to your Condo protects you in more situations than the condo corporation’s coverage can offer and can save you beyond the walls of your unit. It’s a home insurance solution you can lean on when facing the unexpected.

What does Condo Insurance cover?

There are four main types of coverages in Condo insurance:

  1. Building property coverage
    condo insurance quote

    condo insurance quote

  2. Personal property coverage
  3. Liability coverage
  4. Loss of use coverage

Another feature might be included is loss assessment coverage.

Read your condo association master policy; it might cover some of these areas. Hence, you might not need comprehensive coverage. 

Building property coverage: Protects you from damage to the interior of your condo unit financially from a covered event, such as wind damage or fire. It will cover damages to your

wall 

cabinets

 floor

tiles

 other permanent fixtures

Personal property coverage: This protection is for belongings in your home which are not fixtures, like furniture, clothes, portable appliances, and other possessions that aren’t fixtures in your unit. Suppose the episode is a covered event, as with building property coverage. In that case, you will only be able to file a personal property claim up to your policy limit.

Liability coverage: For financial protection, Condo liability coverage provides for bodily injury or property damage to you and your family if held legally responsible. The crucial part of a condo insurance policy is liability protection; it can save you thousands in legal liability. A condo insurance policy typically covers $100,000 in liability.

Loss of use coverage: If your Condo is uninhabitable due to a fire or a flood, or any other covered event, then the insurance company will pay for your stay in a hotel or a long term share within the permissible limit of your policy. So while the repairs go in your Condo and you are staying in a hotel, your bills are covered by the policy.

Loss assessment coverage: Since you are part of an association, the good comes with the bad. You might have society privileges like gym and swimming pool. Still, suppose there is an injury or any other libel event like a falling tree. In that case, the condo association has to bear the cost, and all owners are equal participants. Loss assessment coverage will cover you for those liabilities up to your policy limit.

Read your Condo master insurance policy carefully because some of the property coverages offered in individual condo insurance policies may be redundant. Condo associations have a master insurance policy that covers all the condo owners, and all the owners share the cost. The coverage can generally be of three types:

Bare Walls

Single Entity

All in 

Bare walls coverage: As the name suggests, it only covers the structure of the condo building and the common area; it does not cover any belongings inside your Condo. Suppose you have this type of coverage as a master policy. In that case, it is important for you to explore getting building property and personal property insurance to cover your big investment comprehensively.

Single entity coverage: This is a step above the bare walls policy and includes built-in property like walls, floors, and fixed appliances. If you do any improvements or remodeling, then they would not be included, and you should look into a personal property or, in case of extensive improvement, building property coverage.

All-in coverage: This covers all property that is part of the condo building structure, including improvements and additions to your Condo; it is the most comprehensive type of master insurance policy. In this type of master policy, all of the fixed fixtures within your Condo — including floors, walls, and appliances — are covered. Under this policy, all your belongings are financially protected; you’ll need to purchase condo insurance for personal property damages, which means you’ll find cheaper rates for your condo insurance policy than those buying plans with building property coverage.

Events ( nature or otherwise) that can cause damage to your condo unit (Perils) or personal property. Some examples of perils typically covered under condo insurance policies:

Fire and lightning

Windstorms and hail

Theft and vandalism

Weight of ice, snow, and sleet

What does Condo Insurance not cover?

HO6 insurance may not apply in certain situations because the association’s coverage will apply. Under certain situations, HO6 policy coverage is not afforded, such as:

Natural & other causes

Damage from flood, underground water, earthquakes, mudslides, settling, deterioration, contamination, nuclear hazard, birds, rodents, insects, or domestic animals.

condo insurance near meWork-related

Business pursuits or professional services. Learn more about business owners’ policies.

Vehicles

Ownership, operation, use, or maintenance of aircraft, motor vehicles, and certain watercraft.

To get coverage beyond your condo unit owner policy to replace your valuable items, consider a personal articles policy.

Natural Hazards – You will need separate coverage against nuclear hazards, sinkholes, or earthquakes.

Intentional Injuries to Others – If harm was caused intentionally, your liability coverage would not protect you.

Damage from Municipal Water or Underground water – you may not be covered if a sewer line backs up and floods your unit, but damage from your internal plumbing may be covered, 

Routine Wear and Tear – You are responsible for maintaining your unit. As a condo owner, you won’t be covered for typical and preventable damage to the unit or any appliances in the Condo.

Do you need Condo Insurance?
progressive condo insurance

progressive condo insurance

Even if your condo association has a master policy, Condo insurance can be useful. Their insurance might only cover the commonly owned property, condominium building, and liability for the association.

Unfortunately, there are many cases where the condo master policy won’t cover you or your things—like a break-in, someone injuring themselves slipping on your wet kitchen floor, or water damage to your living room walls. Condo or co-op owners need condominium insurance designed specifically for them.

To protect your personal property and the interior of your unit, condominium policies help. You will also have liability protection for bodily injury or property damage to others.

How much does Condo Insurance cost?

The average cost of condo insurance, or HO-6 insurance, is $429 per year across all 50 states. However, the average price varies depending on the amount of coverage you need and where you live for this type of policy.

Theft of personal items is protected by HO-6 policies and covers damage and repair costs for a condominium. There is condominium insurance to cover liability costs if a guest is injured on the property. Given the financial protection that condo insurance provides, mortgage lenders sometimes require borrowers to purchase it.

average condo insurance cost

Conclusion

Condo insurance can be a tricky proposition. First, there is a master policy from the association, which you have to read and understand to see what it covers. THen you have to contact Compareaquote.com and its experienced team to customize a plan that will protect your large investment to the fullest.

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