Condo Insurance
Condo insurance (HO-6) covers the inside of your unit, your personal belongings, and your liability. It works alongside your condo association's master policy to provide complete protection.
What Condo Insurance Covers
Covers the interior of your unit including walls, floors, ceilings, and built-in fixtures. Your condo association's master policy typically covers the building exterior and common areas.
Protects your furniture, electronics, clothing, and other belongings from theft, fire, and other covered perils.
Covers legal and medical costs if someone is injured inside your condo or if you cause damage to another unit.
Covers your share of costs if the condo association levies a special assessment after a covered loss to common areas.
Pays for temporary housing and living expenses if your condo is uninhabitable after a covered event.
Covers upgrades you have made to the unit such as custom cabinets, new flooring, or renovated bathrooms.
Understanding Your Master Policy
Before purchasing condo insurance, request a copy of your association's master policy. Check whether it is a "bare walls" policy (covers only the building structure) or an "all-in" policy (covers interior fixtures like cabinets and flooring). This determines how much interior dwelling coverage your HO-6 policy needs. Also check the master policy deductible, as you may be responsible for your share of it.
Money-Saving Tips
- Read your condo association's master policy carefully to understand what it covers and where your HO-6 policy needs to pick up.
- Determine whether your association has an 'all-in' or 'bare walls' master policy, as this affects how much interior coverage you need.
- Carry enough loss assessment coverage (at least $25,000-$50,000) to protect against special assessments after a major building loss.
- Document your improvements and betterments with photos and receipts so they are covered at full replacement cost.
- Bundle with auto insurance and ask about claims-free discounts to save on premiums.
Common Mistakes to Avoid
- Assuming the condo association's master policy covers your interior and belongings. It typically does not.
- Skipping loss assessment coverage, which leaves you vulnerable to surprise special assessments of thousands of dollars.
- Not updating your policy after major renovations that increase the value of your unit's interior.
- Choosing actual cash value instead of replacement cost for personal property coverage.
Key Terms to Know
The insurance policy held by your condo association that covers the building's exterior, structure, and common areas.
The specific type of homeowners insurance designed for condo unit owners, covering interior, belongings, and liability.
A charge levied by the condo association to unit owners to cover shared costs after a loss or damage to common areas.
Bare walls master policies cover only the building structure. All-in policies also cover fixtures within units. Your HO-6 needs vary accordingly.