Condo insurance protects what your association's insurance doesn't, including your possessions, repairs to the interior of your unit and liability claims brought against you. Unlike a single-family homeowner, there are policies in force between your personal insurance and the master policy for your condo association. You need to make sure that this insurance overlaps so as not to create exposures for you, and at the same time be sure you don't overpay for unneeded insurance (already covered by the master insurance plan) and that you have extra liability insurance where the master insurance policy stops. A typical condo unit-owner’s policy covers the following:
A typical condo unit-owners policy covers the following:
We want to assist all unit owners with some information that will prove useful when looking at your own unit owner’s coverage. To help you understand what coverage the master policy affords for improvements and betterments we have included the chart below so you know what homeowner insurance to purchase on your unit. Insurance companies have their own unique way of insuring improvements and betterment on a master policy.
The choice falls into five major categories: "all-in", "all-in per condo documents", "original specifications" “All-out”. See definitions below:
The master policy covers the building and the association’s liability exposures. This is subject to the type of building coverage and the master policy deductible. The association’s policy will not cover personal liability for unit owners, damages to unit owner’s personal property, any assessment charges assessed by the association, or loss of use associated with a claim. In addition, some betterments and improvements that may seem permanent may not be covered (e.g., lighting fixtures/chandeliers, draperies, non-permanent floor coverings, etc.).
If you do not have ‘all-in’ coverage, then the association’s policy will also not cover the structural damages to the interior of units.
Therefore unit owners need to carry unit owner’s coverage, otherwise known as an HO-6 policy. (Those who are renting their unit must have a “unit rented to others” endorsement on the policy).
This will allow you to cover your personal liability, personal property, non-covered betterments and any potential loss assessments. The unit owner’s policy should also respond toward a portion of the master policy deductible, if this is determined to be the responsibility of the unit owners.
Some recommended coverages:
We would love to answer any questions that you might have. Our policies have all the
bells and whistles and you can typically bundle the unit owner’s policy with your
insurance for significant discounts on both.
Worried you aren’t completely covered? Consider purchasing an umbrella insurance policy that extends your liability coverage above and beyond what is provided by your homeowner’s policy.
Clients who find out about their coverage only after a claim are often disappointed, frustrated, and at a loss. Please plan appropriately and contact us for a personalized one-on-one consultation to ensure your property and family are properly protected.