Condominium Insurance

Full condo coverage

Condominium insurance, commonly known as an HO-6 policy, is a contract between a condominium unit owner and an insurance company designed to provide financial protection against a variety of risks that may affect both the interior structure of the unit and the owner's personal property. This policy complements the condominium association's master policy, which typically covers the building's common areas, and serves as a safeguard for exposures and property interests not covered under the association's insurance.

Among the primary coverages available are:

Interior Structure Coverage

Covers physical damage to the interior portions of the condominium unit, including walls, ceilings, flooring, built-in fixtures, and permanent improvements made by the owner. This coverage protects against covered perils such as fire, vandalism, windstorms, and other covered causes of loss. It is critical to understand which portions of the unit are covered under the condominium association's master policy to avoid potential coverage gaps.

Personal Liability Coverage

Provides legal and financial protection if the unit owner is found legally responsible for bodily injury or property damage to others, whether occurring inside the condominium unit or arising from certain incidents away from the property. This coverage may include legal defense costs, settlements, and judgments.

Personal Property Coverage

Covers loss or damage to personal belongings within the unit, including furniture, appliances, clothing, electronics, and other personal possessions, resulting from covered events such as theft, fire, and certain types of water damage (excluding flood damage). We strongly recommend maintaining a detailed inventory and retaining supporting documentation to help streamline the claims process and properly establish ownership and value.

Loss of Use Coverage

Covers housing expenses and certain living costs when the condominium unit becomes uninhabitable due to a covered loss.

Additional Living Expenses

Covers reasonable additional living expenses incurred when the unit becomes uninhabitable because of a covered event, including temporary lodging, meals, and related costs.

Loss Assessment Coverage

Helps cover the unit owner's share of special assessments charged by the condominium association for covered losses involving common areas or shared property.

Medical Payments to Others

Covers limited medical expenses for guests who sustain minor injuries within the condominium unit, regardless of fault.

Additional considerations:

Flood Insurance

Because standard condominium insurance policies generally do not cover flood-related damage, it is essential to consider a separate flood insurance policy, particularly in flood-prone areas.

Earthquake Coverage

Similar to flood damage, earthquake damage is generally excluded from standard condominium insurance policies. Damage to the unit's interior structure and personal property caused by earthquakes typically requires separate coverage.

Insured Values

It is critical to regularly evaluate the value of the condominium unit and its improvements to ensure coverage remains adequate in the event of a covered loss. This evaluation should consider inflation, renovation costs, and improvements made to the unit.

Condominium Association Master Policy

It is imperative to fully understand the extent of protection provided by the condominium association's master policy to ensure that the HO-6 policy properly addresses any gaps in coverage and provides comprehensive protection for the unit owner.

*It is important to understand that policy terms, conditions, and coverage availability may vary from one insurance company to another. It is critical to carefully review each policy in order to fully understand the scope of coverage and any exclusions that may apply.