Have you recently purchased a condominium?

A condo can be defined in simple terms as an apartment that you own. They are most often found in areas with high property values, urban areas, and popular tourist areas. A condo is an alternative to a single-family home in places where there’s not much space to build.

Just like when you own a home, you want homeowners insurance to protect your assets. Most mortgage lenders require that you have a homeowners policy to protect their financial interests as well.

With condos, most homeowners associations (HOA) require homeowners insurance. It doesn’t matter if you’ve paid off your loan or purchased the property with cash.

As a condo unit owner, are you debating the need for condo insurance? Keep reading to learn the protection this type of policy offers.

What Is Condo Insurance?

Condo insurance offers condo owners personal liability coverage in the event that a guest is injured in the home. It also offers personal property coverage to replace stolen items if you have a break-in and to repair the inside of the condo unit after a disaster.

Your policy provides living expenses if you need to relocate when the damage makes the condo temporarily inhabitable. In general, it covers what the HOA master policy does not.

Do you want to enjoy better coverage at lower rates? You can learn more about affordable condo association insurance here.

What Is an HO-6 Insurance Policy?

HO-6 insurance is another name for condo insurance. It’s an insurance industry term that refers to one of several home insurance policy forms. Most homeowners are insured with HO-3 policies. Renters have HO-4 policies.

An HO-6 policy form is used to insure condos and co-ops.

Coverage

Let’s look more closely at the coverage you can expect with a condo insurance policy.

Personal Property

Personal property coverage replaces furniture and other items if they’re stolen or damaged by a disaster listed in your HO-6 policy. This typically includes disasters like fire, wind, and hail.

The insurance company will reimburse you for your losses after you meet your deductible. Jewelry is not always covered, so you may need a separate policy for that.

Liability and Medical Payments

If someone sues you for negligence or you need to pay medical bills for someone injured in your unit, this comes under your liability insurance and medical payments coverage.

Dwelling

You may need to insure the interior of your condo with dwelling coverage, depending on your HOA’s master policy. Always check with the HOA to find out what’s covered in the master policy.

Condo Insurance Quote

When you’re considering your options for things such as condo insurance, make sure you have the right coverage for your personal needs. Speak to an insurance provider to help you create the policy that’s right for you. If getting the best deal is important to you, shop around and look for discounts for things like deadbolts and smoke detectors.

Did you learn something here? Look around our site for the inside scoop on topics like financial freedom, business, real estate, and more.

Jane