Condo Insurance: Owning a condo is a great responsibility because you need good insurance to protect your personal belongings and your unit. However, you cannot always rely on the homeowner’s association’s master policy.
If coverage for problems not covered by the Homeowners Association master policy, like theft or accidental injuries to others, is needed, You will need to buy condo insurance. In some cases, condo insurance may be required.
What is Condo Insurance?
Condo insurance, also referred to as the Ho6 policy, is a mix of coverage that is purchased by a condo unit owner. It is a policy purchased to help protect against repair costs and losses for a condominium unit. This policy often protects against theft, water damage, vandalism, fire damage, and more.
H06 insurance generally helps to cover problems that are not covered by your HOA master insurance policy. It also covers additional living expenses if you move from your home temporarily during repairs. And liability coverage, but the problem must be covered by your policy.
Why do I need a Condo Insurance Policy?
Generally, a condo insurance policy is needed if you have a mortgage. Most lenders require a policy since there is a financial interest in the condo. However, if you don’t have a mortgage, this policy can still come in handy. It is useful even if your condominium association has special coverage. This is because there are many cases where their insurance policy won’t cover you or your properties. For example, cases like water damage to your room walls or others injuring themselves in your unit might not be covered.
This is why you need a condominium insurance policy that is made for co-op or condo owners. It helps to specially protect the interior of your unit and your personal property. Also, you will have liability protection for property damage or bodily injury to others.
What Does It Cover?
Typically, an Ho6 policy fills the spaces that the HOA master policy cannot cover. As said above, it covers your personal belongings and cases where someone gets injured in your unit. However, depending on what is in your condo association’s master policy, your HO-6 policy may also include your appliances and interior fixtures. Below is a small breakdown of HO-6 policy coverage.
Personal Property
Personal property coverage covers the cost of replacing furniture and other personal belongings. When they get damaged or stolen by perils listed in your policy. Perils include cases like wind, hail, fire, etc. A standard policy typically covers valuable belongings such as artwork, jewelry, or electronics to certain limits.
Medical or Liability Payments
There are two parts to the policy of an individual condo owner. That can help with financial expenses if a guest is hurt in your apartment or if you damage someone’s property accidentally. Personal property kicks in if you are found responsible for the property damage or injury. The medical payment coverage has a very low limit and can help pay for hospital bills if someone gets hurt in your apartment. Regardless of who is at fault.
Building Property or Dwelling Coverage
As a condo owner, you may have to insure your unit interior with building property coverage. This is also referred to as dwelling coverage, depending on your association’s master policy. Before purchasing the policy, check with the association to know the types of coverage that apply to its master policy. It could be single entity coverage, bare wall coverage, all-in, or all-inclusive coverage.
Loss Assessment
If your association goes above the master policy limits when repairing major damages done to the building, Each unit might have to make up for the remaining differences. However, if you have loss assessment coverage on your HO-6, it might help to cover the financial expenses.
If the HO-6 policy is not enough for your condo, you can just purchase extra coverage in the form of add-ons or endorsements. Some endorsements you can choose include water backup, scheduled personal property, replacement costs for personal property, identity theft, etc.
What Does the Policy Not Cover?
The condo insurance does not cover every scenario. This means you might have to purchase extra insurance for some of the scenarios that are not in the policy.
- Earthquakes
- Heavy floods from sources like storm surges, heavy rainfall, etc.
- Nuclear hazards
- Injuries are done to others intentionally.
- Wear and tear
- Damage from pests, insects, rodents, and birds.
- Damages from sewer backups and other underground water.
As mentioned above, you can purchase add-ons that can help cover these scenarios. However, this might cost you an extra payment.
Best Insurance For Condo
To get your condo insurance policy, there are thousands of companies you can go to. Some of the top providers you can go to include Liberty Mutual, Allstate, Travelers, Lemonade, Geico, Progressive, etc.
Condo Insurance Quote
Getting your quote is simply very easy when you choose the right provider. Just visit the provider’s official website with your basic information, information about your unit, the exact estimate of how much your personal belongings are worth, and any additional people, such as your partner or roommate, that you want on your policy.
How do I Purchase Condo Insurance?
Just so you know, most companies that offer homeowners insurance policies also sell condo policies. Just as mentioned above, you can get the quotes on the insurer’s websites. You can also contact them via telephone or their social media platforms. If you want someone to do the work for you, you can ask agents to help compare quotes.
You will need to take stock of what you won and how much it works to get the right amount of coverage that you need. You can easily purchase HO-6 from the provider’s physical office or website. Also, you can ask the agents to do the needed work for you.
Frequently Asked Question
Is Condo Insurance Required?
Condo insurance may be required in most states. And it was a very wise decision. Without this coverage, you might be unable to make payments for repairs to your unit and belongings if they are damaged by problems covered by the policy.
What is a H6 policy?
HO-6 is another name for condo insurance. This term is referred to as one of the server-home policy forms that is used worldwide. For example, renters have HO-4 policies, while homeowners have HO-3 policies.
What is the Difference Between HO7 and HO6?
HO-7, also referred to as the mobile home form, is a policy designed for mobile homes, trailers, and tiny homes. It is very similar to the HO3 policy; however, it is made especially for manufactured or mobile homes. While the Ho6 is referred to as condo insurance, it provides wall-in coverage against different perils.
Is Condo Insurance Required in Florida?
The Florida law does not require owners to buy the policy. However, know that if you have a mortgage, the lender might require you to have a good amount of the policy as a condition of your loan.
What is Co-op Insurance?
Co-op insurance works the same way as a condo policy. It is an HO-6 insurance policy that helps protect your belongings and other living expenses if you move temporarily after a property loss or damage. This also covers renovations you made to the unit after moving in, and it offers liability protection.
Conclusion
To get the best and most affordable price for the coverage of your choice, I recommend that you get quotes from more than one company. Ensure that each provider offers almost the same coverage amounts and deductibles to get a fair comparison.