What kind of insurance do i need for a condo

Whether you’re buying a condo as a starter home or buying one for a vacation home, you need to protect your assets with condo insurance. Condo insurance offers many of the same protections as homeowners insurance, covering the structure of your unit and your personal belongings.

Unlike home insurance, a condo policy works in conjunction with additional coverage provided by a homeowners association. If you finance a condo, your lender will require you to purchase a condo policy, and your homeowners association likely will too.

Reading: What kind of insurance do i need for a condo

If you’re looking for the best condo insurance, learn how condo insurance works and how to decide how much you need.

hoa vs. condo insurance

Two types of homeowners insurance policies cover a condominium: a homeowners association policy and an individual condominium policy. Building managers buy HOA policies, sometimes called master policies, using money raised from association dues. HOA policies cover the structure of the building, including common areas, elevators, exterior walls, and roofs.

In most cases, HOA policies do not cover individual condo units, so homeowners must purchase condo insurance, known as a HO-6 policy in the insurance industry. Typically, ho-6 policies offer minimal structural coverage. For example, your condo policy may only cover damage to ceilings, floors, and walls inside your unit. ho-6 policies also offer liability and property protection.

what does the hoa cover?

hoa policies may vary based on homeowners association rules and covenants. Bare Wall HOA policies cover collectively owned building areas and bare structural components of individual units, such as ceilings, floors, and walls. A bare walls policy would cover common areas like lobbies and recreation areas, but would not cover items like appliances, cabinets, floor coverings, and wallpaper inside your unit.

Hoa all-in or all-in policies provide the same coverage as bare wall policies, but also cover fixtures inside your unit and structural improvements you’ve made to your home. For example, if a grease fire destroys your kitchen, an all-inclusive policy would provide coverage to replace your cabinets, flooring, and wallpaper, even if you’ve replaced the original items. An all-inclusive HOA policy will not cover personal property like dishes and cookware.

hoa policies typically offer two types of protection:

  • Liability Coverage – Liability coverage helps pay for medical expenses when someone is injured in a common area of ​​the condominium complex. For example, if a tenant’s guest slips and falls on a common patio, the association’s liability coverage may pay for medical bills. This type of coverage also helps pay legal fees if someone sues the association for an accident in a common area.
  • Property Coverage: Property insurance covers common areas and portions of common property in the complex, such as basements, clubhouses, patios, elevators, exterior walls, gyms, playgrounds, swimming pools, stairs and roofs. If a storm damages the clubhouse roof of your condominium complex, the management can file a claim against the HOA property coverage. Property coverage can cover damage from a variety of perils, including fire, storm, and vandals. Just like a homeowners policy, HOA insurance often excludes damage from earthquakes and floods.
  • See also: When should you report a car accident to insurance

    Because coverages and exclusions may vary, please read your policy carefully.

    what does condo insurance cover?

    Condo insurance is like homeowners insurance with a few differences. Condominium policies generally cover losses from the same perils as a standard homeowners policy, including:

    • accidental discharge of water from appliances or plumbing
    • burns, cracks or accidental and sudden breakage of systems such as air conditioning and heating systems
    • planes
    • riots and civil unrest
    • explosions
    • falling objects
    • fire and lightning
    • frozen appliances, heating and air conditioning equipment, or plumbing
    • surges
    • smoke
    • theft
    • vandalism
    • vehicles
    • volcanic eruptions
    • weight of ice, sleet or snow
    • wind storms and hail
    • Standard condo policies include:

      • dwelling coverage: When a covered peril damages the structure of your condo, your dwelling coverage can help pay for repairs. For example, if a storm causes water damage to your carpet, homeowners coverage can help pay for its replacement. Before you buy homeowners coverage, find out if your homeowners association’s hoa insurance covers structural damage to your unit.
      • Loss of Use Coverage: Also called “additional living expenses” coverage, Loss of Use coverage can help pay for your living expenses if you are displaced from your condominium after a covered loss. For example, if a fire destroys your living room, this coverage can help pay your hotel and food expenses while a contractor repairs your condo.
      • Third Party Medical Payments: If someone falls and is injured in your condo, this coverage can help pay for medical expenses.
      • Personal Liability Coverage – When someone sues you after an accident in your home, personal liability coverage can help pay your legal bills. Some condo policies combine medical payments and personal liability coverage. Liability coverages typically start at $100,000 to $300,000, but you can increase coverage to meet your needs.
      • personal property coverage: If a thief steals your TV or a fire destroys your sofa, personal property coverage can replace them. Most personal property coverage pays actual cash value, which pays for the depreciated value of your belongings. Many insurers offer optional replacement cost coverage, allowing you to replace your property at current prices.
      • remember the basics

        A condominium policy works like homeowners insurance, covering your personal property, protecting you against costly lawsuits, and providing limited property coverage.

        cost of condo insurance

        According to a 2020 study, Americans pay an average annual condo insurance premium of $625 per year, based on a policy that includes $300,000 in liability and $60,000 in personal property coverage. rates can vary widely by location.

        Other factors that may affect your condo insurance rates may include:


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