Condo insurance, also known as HO6 insurance, is a type of insurance policy that is designed to protect condominium owners from financial losses caused by unexpected events. This type of insurance is different from traditional homeowner's insurance because it specifically covers the unique risks that come with living in a shared building. With condo insurance, you can be covered for damages to your unit, liability, and personal property.
Condo insurance typically includes two main types of coverage: property coverage and liability coverage. Property coverage protects your unit and personal belongings from damages caused by covered perils, such as fire, theft, or water damage. Liability coverage, on the other hand, protects you if someone is injured on your property, or if you cause damage to someone else's property. Additionally, condo insurance may also provide additional living expenses coverage, which can help cover the cost of temporary housing if your unit becomes uninhabitable due to a covered loss. It is important to note that while your condo association may have a master policy, it may not cover everything, which is why having your own condo insurance policy is important.
What's Typically Covered by Condo Insurance?
- Personal belongings - including furniture, appliances, electronics, clothing, and other personal items.
- Interior structures - including walls, ceilings, floors, and fixtures within your unit, such as cabinets and countertops.
- Upgrades or improvements - if you have made any upgrades or improvements to your unit, such as installing new flooring or adding custom cabinetry, you may need additional coverage beyond the standard policy.
- Loss of use - if your unit becomes uninhabitable due to a covered loss, your policy may cover additional living expenses, such as hotel costs or temporary housing.
- Liability - protects you in case someone is injured on your property or if you cause damage to someone else's property.
- Medical payments - covers medical expenses for injuries that occur on your property.
- Loss assessment - covers the costs of special assessments levied by the condo association for damages or losses that exceed the master policy coverage.
- Personal liability - provides protection in case you are sued for libel or slander, or if you accidentally injure someone.