All About Condo Insurance - What Does My Condo Insurance Cover?

Condos are considered some of the most challenging types of properties to insure. The main reason is that condos combine titled ownership of a unit, shared common areas, and either a condo corporation or a property management company that owns the structure.

Condo Insurance Policies, or commonly referred to as HO-6 policies, protect individual unit owners even though part of the unit may be covered by the condo corporation master insurance policy.

Condo Insurance Policies provide the following coverage to unit owners.

Coverage A - Dwelling Coverage.

This covers the actual unit, appliances, and upgrades commonly referred to as betterments & improvements. Now, this is where it gets complicated. The condo corporation master policy may provide you with some coverage. However, don’t count on this and have the master policy reviewed by a CoverMyCondo.com approved agent. Figuring out where the condo master policy ends and where your personal HO-6 policy begins is important. For example, the condo corporation may have what is commonly referred to as an “all in” or “walls in” policy that will cover your unit including the betterments and improvements. That means any upgraded countertops or hardwood floors will be covered by the condo master. However, the master policy may have a large deductible of $25,000 or more. That is why this section of the HO-6 must more than cover that $25,000 gap to ensure any claims under that amount are paid by your HO-6. Just as easily, a condo master policy will explicitly say that “betterments & improvements” are not covered. In this situation, your agent should ensure that your Coverage A not only covers the condo master policy deductible, but extra coverage for the upgrades.

Coverage C - Your Contents.

This section of the HO-6 covers your personal belongings. All of them. Your television, clothes, pots, pans, furniture, and even your hair straightener. We generally underestimate how much stuff we have, so don't carry a low amount here. This is especially important if you have jewelry or furniture that is valuable. Remember, depending on the HO-6, there may be special limits to jewelry and if you need more, ask your insurance agent about a blanket jewelry endorsement.

Coverage D - Loss of Use/Additional Living Expenses

This is another overlooked but crucial section. If for an insured reason you cannot live in your unit, the insurance company will cover your hotel cost or temporary apartment rental. I have worked with clients who had large fire claims in their condos and lived in a hotel for a year! Make sure this section has adequate limits as it is often not your fault if you need the coverage.

Section II - Liability

No one plans on getting sued, but it happens. Liability insurance, and its cousin Umbrella Coverage, is financial risk management. If you are taken to court for negligence, you will be covered and you don’t need to worry about losing your condo or other assets.

Endorsements

This is the part of an HO-6 policy that is customizable. Some carriers offer unique endorsements and its important to ask what is available to you. As we mentioned before, a Blanket Jewelry endorsement can be added if you have multiple items that total a limit higher than the standard amount on the HO-6. Other endorsements include Sewer or Water Back-Up and even Earthquake coverage.

Ultimately, working with a CoverMyCondo.com approved insurance agent gives you peace of mind knowing we will ensure you are protected properly. If you want to add auto insurance or an umbrella policy, your agent will work with you to ensure you receive the best possible price and coverage options. Who offers the best HO-6 policy? What does my condo insurance cover? There are no bad questions. Let one of our nationwide vetted, local and licensed insurance agent from CoverMyCondo.com assist you in covering your condo.