What does condo insurance cover?

What condo insurance covers

Property and personal belongings

Condo insurance, sometimes called HO6 coverage, helps protect your property and personal belongings in case of accidents, theft and other damaging events. Condo insurance typically covers personal belongings such as electronics, clothing, jewelry and furniture. It’s also designed to cover damages caused by:

• Fire and smoke
• Theft and vandalism
• Water damage
• Lightning

If a damaging event requires you to move while repairs are made, condo insurance may help cover the cost of temporary housing and living expenses.

Unlike home insurance, which generally covers the interior and exterior of your home, condominium insurance is designed to cover only the interior of your property and personal belongings. As a result, condo insurance coverage often costs less than traditional home insurance.

Personal liability

Personal liability coverage is often included in standard condo insurance policies. This means your condo insurance may offer coverage if you’re found responsible for accidental damages to another person’s unit. For example, if a fire that starts in your condo causes damage to your neighbor’s unit, your condo insurance could help cover the costs of repairing their property.

Condo insurance also helps cover your liability if someone is injured inside your unit. For example, if someone comes over to your condo, slips and falls, and sues you, your condo insurance could help cover related expenses like legal fees.

What’s not covered under condo insurance?

Condo insurance generally only covers accidents, theft and unexpected damaging events. If you purposefully damage your unit or misplace a personal belonging, your condo insurance policy will likely not provide coverage.

Damages caused by earthquakes and flooding are typically not covered under condo insurance. If you’re in a situation or location that puts your property at higher risk of these events, it may be wise to look into flood insurance or earthquake insurance in addition to your condominium insurance policy.

Infestations and pest-related issues are also usually not covered by condo insurance policies. Infestations are seen as preventable with proper maintenance of your condo, not accidental.

What does your condo association’s policy cover?

Your condo association’s insurance, also known as the master policy, generally covers the structural elements of your condominium building like the roof and outside walls. Common areas such as elevators, hallways, gyms, pools and outdoor spaces are also typically covered.

Different condo associations offer different types of condo insurance coverage for individual units. Some condo associations have bare walls-in insurance, meaning their policy only covers the condominium building’s structural elements and common areas. This type of policy would not cover things inside your individual unit such as drywall and cabinets.

Other condo associations may have all-in coverage. This type of policy helps cover the condominium building’s structural elements, common areas and parts of your individual unit such as built-in appliances, fixtures and installations.

Even if your condo association offers partial coverage for individual units, you could still be at risk of managing the cost of replacing lost belongings or repairing damages. Standard condo insurance could offer you the extended coverage you may be looking for.

Is condo insurance required?

Condominium insurance coverage may be required in certain scenarios. If you take on a mortgage to purchase your condo, the loan provider may require you to have condo insurance. Your homeowners association (HOA) may also require you to have coverage according to their policy. Just remember, without insurance for your condo, you could take on greater financial risk.

Exploring different coverage options

Many insurance providers offer competitive rates if you bundle your condo insurance with another policy, such as car insurance. Exploring different coverage options can help you find the condo coverage that’s best for you.

As you look around, it may be beneficial to reflect on the personal belongings you’d like to cover and the potential cost of repairing damages. This could help you determine the amount of coverage that may work for you.

Conclusion

Condo insurance is designed to help protect your property and personal belongings, so it’s important to find the coverage that works best for you. Review your condo insurance options today to help determine which coverage may best fit your needs and budget.