Condo Insurance
Posted: 3 August, 2023
Condo insurance, also known as H06, is designed to cover what your condo association’s master policy won’t. Condo Insurance is a wall in policy. A typical condo insurance policy covers your personal belongings and pays out if you’re found responsible for someone’s injury. Even if your loan is paid off, many associations require owners to buy induvial condo policies, and they may specify minimum levels of coverage.
What does a condo insurance policy cover?
A condo insurance policy covers many of the same things as a typical homeowner insurance policy.
- Dwelling coverage: Covers the structure of the condo unit itself, depending on the extent of your condo association’s master policy.
- Personal property coverage: Covers your personal property that you keep inside your condo, including things like clothing, furniture, and electronics if they are stolen or damaged by a covered peril.
- Personal liability coverage: Protects you financially if you are responsible for damage to someone else or their property. This covers property damage, medical costs, and legal costs if the situation goes to court.
- Loss of use coverage: Covers your additional living expenses if your condo is damaged by a covered peril and made unlivable. Loss of use coverage would pay for a temporary rental, commuting costs, and other expenses that come with being forced to live somewhere else while your condo is being repaired.
- Loss assessment coverage: Covers your portion of an expense charged to all condo owners if the building exterior or common areas are damaged by a covered peril.
- Bare walls coverage-Covers the structure of the building and damage to common areas. Bare walls coverage also provides some amount of structural coverage for your unit, including things like the drywall, insulation, and plumbing.
- Single entity coverage-single entity master policies include the same coverage as a bare wall's policy, but coverage for your individual unit includes more of the physical structure, including walls, flooring, bathroom fixtures, and everything else that was already in place when you moved into the unit.
- All-in coverage: This is the most comprehensive type of coverage, covering the entire interior structure of your condo. This would include additions, improvements, and appliances. An all-in master policy means you probably don’t need any dwelling coverage at all on your personal condo insurance policy.
Written by: Premium Emilan