Condo Insurance
Briteline Insurance has helped countless clients navigate condo insurance.
Condo insurance covers what your Homeowners Association (HOA) won’t. Things like repairing the INSIDE of your unit after disasters, replacing lost, damaged or stolen property and paying liability costs if guests are injured there. These occurances would not be covered by the HOA master policy.
Normally you’ll see condo insurance described as HO-6 insurance, which refers to one of several commonly used home insurance policy forms used industrywide. For example, most homeowners are insured with what is called an HO-3 policy while renters have HO-4 policies.
Is condo insurance required?
Just like homeowner's insurance, mortgage lenders will require you to purchase condo insurance to protect their financial interest during the length of your loan.
Even if you own your condo outright you may still be on the hook for condo insurance because most HOAs require it.
What exactly does an HOA or condo association’s master insurance policy cover?
Normally, some of your HOA fees go toward a master insurance policy that covers certain disasters and liability occurrences. For example, individual condo owners aren’t normally held responsible for damage to the building’s exterior, such as wind/hail damage to the roof. Common areas also usually fall under the HOA’s scope of coverage, including the land outside the building, tennis courts, swimming pools, the lobby, elevators, staircases and hallways.
Additionally, the HOA typically will assume responsibility for injuries sustained in any common areas. For example, if a visitor is injured on an icy walkway outside the front door to the building, your HOA’s insurance will likely cover the liability costs in case of a lawsuit.
What does condo insurance cover?
Individual condo insurance normally covers your personal property, living expenses if you need temporarily relocate after a disaster and damages if someone sues you for negligence. Depending on what your condo association’s master insurance policy includes, your individual policy may also cover your unit’s interior fixtures and appliances.
This can get complicated because every master policy is unique in the sense that coverage stops at a certain point. Some master policies include things like windows, balconies, drywall etc. And some do not. That’s where Briteline Insurance can ensure you are adequately covered and at the same time, aren’t paying for coverage you don’t need due the HOA policy coverage overlap.