NYC Insurance Blog

What is Condo Insurance, and How Does it Work?

Condo owners do not own the land or the building but buying the right condo insurance for the unit or personal belongings is essential. The condo owner purchases a condo insurance policy if they need to repair the unit or if their belongings are stolen or damaged.

Condo insurance is similar to homeowners insurance. The two insurance policies protect the home you are living in and your personal belongings. However, condo insurance provides personal liability coverage. This means that the policy pays for any damages if you are found responsible for any injuries or property damages if you have guests. Before you purchase a condo insurance policy, always check what's covered in your master's policy (HOA policy) because the two are meant to complement each other. Contacting an insurance broker, can make findign the right Condo Policy for you easier, Call Us Today!

What Does Condo Insurance (HO-6) Cover?

Although condominium associations have their own insurance policy, the insurance coverage is limited. 

For example, if there is water damage, break-in, or slip and fall in your condo, the condo insurance will help you. Condo insurances help protect your personal property and your condo's interior. With the insurance policy, you will enjoy liability protection for any bodily harm or property damage in your condo. With condo insurance, you have the liberty of enjoying protection against:

• Smoke
• Windstorm
• Fire/Lightning
• Theft
• Malicious mischief/vandalism
• Accidental water discharge

Here are the areas covered by condo insurance:

Dwelling Coverage

This coverage protects the condo unit and the upgrades you may have made, for example, plumbing, custom hardwood flooring, and appliances. Your dwelling coverage depends on the HOA master insurance policy. Remember, HOA master insurance policies do not include loss of use or personal property loss. However, with condo insurance, you are covered.

Personal Property

Personal property insurance protects your valuable items like furniture, appliances, clothing, etc., if they are stolen, damaged, or destroyed by a covered risk, for example, tornado, fire, windstorm, and vandalism. It is essential to understand the limitations and exclusions in personal property coverage.

Liability Coverage

Condo insurance pays for any damages you are held responsible for as the condo owner. For example, if a person slips, falls, and injures themselves our condo unit, liability insurance will cover the resulting losses. Liability coverage will cover legal defenses and court proceedings if you are sued.

Medical Payment Coverage

If someone is hurt in your condo, medical payment coverage pays their medical costs. Paying for medical costs out of pocket can affect your finances. However, with medical payment coverage, you can have peace of mind. The coverage pays for any medical expenses, for example, X-rays, surgery, and ambulance rides. Remember, this coverage does not cover your medical bills.

Loss of Use Coverage

Loss of use coverage pays for additional expenses if the condo becomes uninhabitable and you are forced to relocate temporarily. For example, any extra expenses will be covered if the unit is damaged and you are forced to stay in a hotel. Suppose you spend $7,000 a month, and you end up spending $10,000. Loss of use coverage will cover the extra $3,000. The terms of loss of use coverage vary. While some insurers reimburse you a specific amount of money each day or set of days, some give a maximum amount per claim.

What is Covered by the Condo Association Insurance?

Condo Association Insurance should have an insurance policy covering the building structure and common areas. Individual condo owners' insurance policies do not cover the walls or condo structure. If the elevator or roof is damaged, the condo association insurance/HOA will cover the damages.
HOA also has liability coverage. This type of coverage is crucial because it covers injuries that can occur in common areas, for example, parking lot or pool area. Condo owners should understand that coverage for liability does not cover injuries that occur in individual condo units unless they result from structural problems. Also, coverage for liability does not cover individual possessions or units. Understanding what coverages you have and may need is important, let us help you with deciding the best coverage amount!

How Much Condo Insurance Should I Get?

You need sufficient condo insurance coverage to:

• Replace all your personal items
• Rebuild the condo interior
• Pay for any lawsuits if you are sued

Therefore, coverage varies depending on the amount of assets you want to protect and the cost of the condo. Most insurers have estimates for the cost of rebuilding a condo unit. Also, they provide home inventory forms to help condo owners accurately detail their possessions. Give us a call today! We can get you a condo quote in a few minutes!

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