Condominium Insurance Information
Condominiums offer an alternative to traditional single-family home ownership with the benefits of hassle-free grounds keeping and maintenance of common areas. Condo owners can protect their personal belongings and finances with a condominium insurance policy that is designed for their specific needs.
If you are purchasing condo insurance for the first time, you may have many questions about this distinctive form of home insurance. We can provide you with answers, help you assess your unique coverage needs and help you make an informed decision about your coverage.
Condominium Insurance vs. Homeowners Insurance
A traditional homeowners insurance policy provides coverage for damage to the structure of the home as well as the contents within. Typically, the condo association will have a master policy that covers damages to the structure of the building and to the common areas. This policy also provides liability coverage for injuries that occur in common areas or on-site facilities such as a gym or swimming pool.
Because condominium association insurance covers damage or injuries in common areas, condo owners can obtain insurance coverage that is less costly than typical homeowners insurance policies. In this way, condo insurance policies are written specifically for the unique needs of condo owners.
Cooperative housing residents have special insurance needs as well. If you are just starting out as a home buyer and are assessing your insurance costs and options in advance of purchasing a home, condo or co-op, talk to us about the insurance coverage you will need.
What Is Condo Insurance?
Condo insurance, also known as HO-6 insurance, covers the personal property damage and liability risks faced by condo owners; it picks up where the condo association insurance leaves off. Most mortgage companies require you to buy condo insurance and remain covered for the life of your loan.
Condominium insurance is designed to protect you, the condo owner, from financial loss if someone is injured within your home. It will also protect you from damages and loss due to burglary, fire or other incidents.
What Does Condo Insurance Cover?
When you own a condominium, you are responsible for covering any and all damages within your unit, often including interior walls, flooring and ceilings. A condo insurance policy will also provide coverage for your personal property. If you should incur losses due to theft or experience property damage caused by such things as fire, water damage or tornado, you may be able to receive compensation through your condo insurance.
Your condo insurance will also cover you against liability claims. If a guest is injured while in your home and you are held liable, your condo insurance can cover some portion of the bodily injury claim, depending on your liability limit. If you are sued, most policies will also provide coverage for court costs and legal fees. Be sure to check the terms of your policy for full coverage details.
When shopping for a condo insurance policy, be sure to carefully review your needs, and inventory your personal belongings to understand their value if lost or damaged.