Even though there are several common areas associated with any condo, it will be necessary to obtain condo insurance, or HO-6 coverage, that will cover your personal space and belongings within the overall unit.
There will be a master coverage plan for the whole condo, but you’ll have to provide your own coverage for personal spaces and assets.
What is condo insurance?
Condo insurance is sometimes called walls-in coverage, because it protects your individual unit within the overall condo building.
If you had to pay the expenses for any kind of damage to your unit, or any loss of personal belongings, it could be devastating financially.
Fortunately, condo insurance can save you from that kind of disaster by covering the financial loss and making you whole again.
What can it cover?
There is some fairly extensive coverage provided by typical condo insurance.
For starters, it covers the unit itself (your dwelling only), and means all fixtures and walls of the unit. Like a homeowner’s insurance policy, it covers what is yours, not your neighbors.
Any electronics, furniture, or other movable goods are also covered.
You’ll also have some degree of personal liability coverage, to protect you against incurring legal expenses from any kind of lawsuit or claims made against you.
If the unit should become uninhabitable during the course of your occupancy, you will be covered by your condo insurance for the cost of alternative lodging or transportation which becomes necessary.
Some acts of vandalism or theft are also covered, as is fire damage and in some cases, damage from hail or winter storms.
Finally, condo insurance will also handle your share of potential losses which would be shared out by your condo homeowner’s association.
What does it not cover?
Condo insurance does not cover some ‘acts of God’, for instance:
- floods
- earthquakes
- hurricane damage
- tornado damage
- etc.
These specific events must be covered under extra insurance coverage you buy from another vendor. If you live in an area prone to earthquakes, for example, it would be prudent to purchase earthquake insurance.
Similarly, if you live near a river, lake, or ocean where the potential for flooding exists, it would be wise to cover yourself against the potential of flooding.
Are there policy limits?
The limits on any condo insurance coverage will depend on how extensive the coverage is that a buyer needs.
If you’re talking about a typical condo insurance policy, it will may have limits on personal property (clothing, jewelry, appliances, etc.) of approximately $50,000.
Identity theft and financial loss may be covered up to $20,000, and personal and premises liability will may be covered up to $1,000,000.
Condo Coverage Policy
| COVERAGE | Condo Coverage |
| Dwelling – Coverage A | No Coverage |
| Perils Covered | |
| Valuation: | |
| Other Structures – Coverage B | No Coverage |
| Contents – Coverage C | Amount Purchased |
| Perils Covered | Named Perils |
| Property Exclusions | More Information |
| Valuation:/td> | |
| Actual Cash Value | Yes |
| Replacement Cost | Can be Purchased |