What is condo insurance?
Condo insurance helps protect against the cost of theft or damage to the inside of a condominium unit. While your condominium association has a policy covering the exterior and shared areas of the building, condo insurance protects your belongings. If your condo becomes uninhabitable and you need to move out after a catastrophe, it will cover living expenses. Condo insurance also covers you for liability if a guest gets injured while in your condominium, such as slipping on a wet floor. You may also see condo insurance referred to as condo HO-6 insurance.
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When do I need to be aware of condo insurance?
If you plan to move into a condominium, you will need condo insurance to cover your belongings and protect you from liability. Your condo association's policy may cover some of the items inside your unit, like interior walls and appliances. Check with your condo association to see what it covers. Mortgage lenders may require you to purchase condo insurance to protect their investment during the time of your loan.
What is important to know about condo insurance?
Like a standard homeowners insurance policy, condo insurance will cover disasters such as fire, theft, or storms. Damage from flooding or earthquake requires separate insurance. A breakdown of each type of coverage is listed below.
- Your personal property is covered, including your clothing, furniture, and other belongings in the event of a named peril like theft or storm damage.
- If your property is uninhabitable following a peril, condo insurance will cover hotel and living expenses.
- Condo insurance covers liability costs if someone is injured inside your property.
- Depending on your HOA's master policy, you may need dwelling coverage; check to see if the HOA’s policy covers items built into your unit.
- Loss assessment coverage can help you pay if your HOA requires owners to contribute funds toward a major loss.
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