Your condominium is your home and your sanctuary. It’s where you live your life every single day. While condo owners only own a portion of the building and the land their property sits on, they still face many of the same risks and potential claims that a typical single-family homeowner would. It’s important to make sure that you are protected in case something unforeseen happens.
Condo insurance protects your individual unit, the fixtures inside, your belongings, and is your personal liability protection if someone is injured in your unit. Condo insurance, also known as a H0-6 policy, supplements the insurance that is oftentimes provided by the condo association. Many times, the insurance requirements a condo owner must meet are outlined in the condo association’s bylaws.
Condo unit owners typically form a condominium owners’ associa- tion to manage the expenses, maintenance, repair, and replacement responsibilities for all the common areas of a condominium (such as lobbies, sidewalks, roof, swimming pools, etc.). The condo association will often carry a master policy that covers the building and common areas, but that master policy does not typically cover damages that occur inside your unit. So, it’s important to make sure that you have the right condo coverage in place.
The condo owners’ association master policy typically covers damages to the building itself, common areas, and injuries in common areas. The following table explains certain scenarios that are covered by either the master policy or the individual unit owner’s condo policy:
*There are two types of condo master policies: “All-in” and “bare walls”. Depending on which type your condo association master policy is would determine which policy would cover the claim
1. An “All-In” policy will cover damage to the original fixtures, flooring, and countertops in your unit.
2. A “bare walls” policy only covers real property from the exterior framing inward. Meaning, your condo’s fixtures, flooring, and countertops would not be covered.
The prices of condo insurance will vary based on a variety of factors, including:
Because condo insurance is a type of homeowner’s insurance with a few coverage differences because of the condo master policy, the average cost of condo insurance is typically less than the cost of a homeowner’s policy. Working with an independent agent with access to multiple insurance companies will provide you the best price and coverage options to meet your individual needs.