Condo Insurance Is As Important As Homeowners

11 Oct
Condo Insurance

Downtown Miami Florida along the Miami River inlet with a beautiful background of Brickell Key

If you live in a condominium you may think that homeowners insurance doesn’t apply to you but that could not be further from the truth. You need protection for both your personal belongings as well as the parts of your building that are part of your particular condo unit.

Here is a rundown of everything you need to know about condo insurance:

What is Condo Insurance?

A condo insurance policy is technically called an HO-6 policy and it provides protection for the inside of your condo as well as your personal possessions. In most cases, your condo insurance policy will cover the following:

  • The interior walls of your unit
  • The appliances in your unit
  • All of your personal property and valuables

Just like renters insurance, a condo insurance policy also offers liability protection in the event that someone is injured at your condo. It will cover medical costs as well as the cost of a legal defense and any resulting judgments or settlements, up to your policy limits.

The external areas of your condo would fall under the jurisdiction of the condo association and they should be carrying a master policy that covers the building as well as any common areas.

What is Covered by Condo Insurance?

In almost all cases, a HO-6 policy covers whatever is not covered by the condo association’s master policy. A condo association master policy comes in two different flavors and the type of master policy your association is carrying will influence how much coverage you need.

All In Master Policy: This policy type is also called a “single unit” master policy and it covers the fixtures in your particular condo unit such as the wiring, plumbing, appliances and even the carpet, but it doesn’t offer any protection for your personal property or liability coverage.

Bare Walls Master Policy: This type of policy doesn’t cover anything contained in the walls of your unit. It’s possible that if might cover the plumbing and electrical systems but not all of these types of policies cover these systems.

It is extremely important to review the master policy of your condo association to determine what level of coverage the master policy offers and increase your coverage if necessary.

Regardless of what type of master policy the association is carrying, your HO-6 policy will cover your personal possessions from damage or destruction as well as providing personal liability coverage.

Some policies may offer loss of use coverage if your condo becomes unlivable due to a covered peril such as fire or windstorm damage. This portion of the policy would cover expenses such as hotel bills as well as the cost of eating at a restaurant.

Just like a homeowners policy, many condo policies limit coverage for specific high value items such as art, jewelry, firearms and collectibles.

Do I need Condo Insurance?

The answer to that is a resounding yes. If you have a mortgage on your condo, your lender will require that you carry an HO-6 policy. Even if you own it outright, the protection offered by a condo policy not only gives you peace of mind but will also allow you to replace your possessions in the event of a catastrophic event.

In addition, the liability coverage will protect you if someone is injured in your condo. This can literally be a financial lifesaver as lawsuits can be extremely expensive.

How Much Will I Pay for Condo Insurance?

The cost of condo insurance will vary dramatically depending on the size and location of your condo as well as your personal details, but in general, an HO-6 policy is cheaper than a homeowners policy. Expect to pay between $200-$800 a year. Larger condos can run higher and just like all other forms of insurance, your personal factors (like your credit score) will influence the price.

Now that you know all there is to know about condo insurance, its time to start shopping. If you are looking for a condo policy, we can help. Simply fill out our online quoting application and we will compare up to 12 rates and coverage options to help you find the perfect HO-6 policy for your needs.