Condo insurance, designated an HO-6 policy, is similar to regular homeowner's policies in many respects but is specific to condominiums. Unlike regular homeowner's insurance, condo insurance covers your unit only from “the walls in,” with exterior areas such as outside walls, roofs, hallways and other common areas falling under the responsibility of the condo association's master insurance coverage.
Because association master policies are specific and varied as to what they cover, your personal condo insurance policy should be tailored to fill the gaps the association coverage may leave. It's best to get a copy of your association's policy and consult with your insurance agent to determine what coverage is most appropriate for your specific needs.
Here are some common FAQs regarding condominium insurance:
Q: What is condominium insurance?
A: Condo insurance protects you and your home from unexpected losses such as damage, stolen belongings or someone getting injured in your home.
Q: What does it cover?
A: Condo coverage includes your structure from “the walls in,” and your personal belongings, including appliances, electronics, clothing, furniture, etc. It may also cover living expenses if your unit is rendered uninhabitable while being repaired for damage. Your personal liability is also covered, including legal fees/medical costs if a guest is injured within your unit.
Q: Are there limits to my coverage?
A: Reimbursement for structural damages from covered perils, such as fire, will have a dollar limit as set in the policy. Unlike typical homeowner's insurance, which has financial loss limits of personal property set at a specific percentage of the structural damages amount, condo coverage on personal belongings is set at a flat rate, and often with quite low limits. It would be prudent to total up the value of all of your personal possessions within the home and add this amount of coverage to your policy, especially if you have very valuable items such as expensive artwork, furs, jewelry, coin collections, etc.
Q: Do I need master policy deductible coverage?
A: Condo homeowner's associations may choose a very high deductible on their master policies in order to save money on their insurance premiums. You should read your condo association documents to find out the amount of deductible for which you'd be responsible if they make a claim and then add on the appropriate amount of master insurance policy deductible coverage to reimburse the amount you're charged under the master policy's deductible.
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