When you own a condo, your insurance needs differ slightly from those of a standalone home because you are part of a condo association, which also carries its own insurance. Here’s what you typically need for condo insurance:
1. HO-6 Insurance Policy: This is the standard insurance policy for condominium owners and is specifically designed for condo living. It covers parts of the structure that the condo association’s master policy does not cover, your personal property, liability, and additional living expenses if you need to live elsewhere temporarily due to a covered loss.
2. Personal Property Coverage: This covers the contents of your condo, such as furniture, electronics, and clothing against theft, damage, or destruction from covered perils like fire or storm damage.
3. Interior Structure Coverage: Also known as “walls-in” coverage, this part of a condo policy covers the interior structures of your unit — like walls, floors, and ceilings — from damage. The extent of what needs to be covered can vary depending on what the condo association’s master policy covers. Some policies cover all interior surfaces (all-in), while others may only cover original fixtures and fittings (bare walls).
4. Liability Insurance: This protects you in case someone is injured while in your condo, or if you, a family member, or even a pet causes damage to other people’s property. It can cover legal fees and damages.
5. Loss Assessment Coverage: This is particularly important for condo owners. If the condo association levies a special assessment to cover a major expense not fully covered by the association’s policy — for instance, significant repairs to the building after a natural disaster — this coverage can help pay your share of the assessment.
6. Additional Living Expenses (ALE): If your condo becomes uninhabitable due to a covered peril, this coverage helps pay for temporary living expenses, such as hotel bills and meals.
It’s also essential to understand the details of your condo association’s master policy (sometimes called an HOA policy). There are generally two types:
– “All-In” Master Policy: Also known as a single-unit policy, this covers fixtures in your condo such as plumbing, wiring, and heating systems, and original appliances.
– “Bare Walls-In” Master Policy: This covers only the exterior and common areas, leaving you to insure everything inside your condo’s walls, including appliances, interior walls, floors, and ceilings.
Reviewing both your personal needs and the coverage provided by your condo association’s policy will help ensure that you are adequately covered without any unnecessary overlaps. Consulting with an insurance professional can provide personalized advice based on your specific circumstances and the association’s coverage.