Condominium Insurance: What it is and why you need it There are many convenient aspects to living in a condominium or townhome community. However, moving into a condo or a townhouse can also present challenges when it comes to protecting one of your largest investments.

Why do I need condominium insurance?

Most planned communities or common interest developments maintain a master insurance policy that offers coverage for building structures and limited common elements (e.g. elevators, pools, roofs, and lawns), along with liability protection. The fees for this insurance coverage, along with the costs to maintain and repair common elements, are usually shared by all of the community homeowners through association dues.

However, the association’s insurance coverage only extends to a certain point, and then you need your own insurance policy to protect the rest. For example, the master policy may not cover certain issues that can specifically occur inside your unit, such as: 

  • Water backup or sump pump failures
  • Break-ins, burglaries, or vandalism
  • Personal possessions, including furniture, clothing, and electronics
  • Liability protection for injuries and accidents that occur within your home

What type of condominium insurance do I need?

If you’re a condo owner, here is the most common type of insurance for your unit:

  • HO-6 coverage1 : A personal protection policy that provides possessions and liability coverage to the owner of a unit within a common interest development. The HO-6 policy is meant to work in conjunction with the association’s master policy to help ensure complete coverage.

What can I do?

  • Find out what your community’s master insurance policy covers. Check with your association’s Board of Directors, property management company, or contact the community’s insurer directly to obtain a copy of the policy.
  • Know what you have and what it’s worth. Complete a home inventory so you can purchase the appropriate level of coverage for your needs.  In addition, contact your insurance agent to update your coverage as your life changes (e.g. home remodeling, luxury purchases, starting a family). Be honest with your insurance agent so you can avoid claim denials.
  • Protect your unit from water and sewer backup and flood damage. Speak to your insurance agent about these distinct types of coverage.
  • Need coverage above and beyond? Consider the addition of an umbrella liability policy which offers an increased level of protection should a claim exceed your basic policy limits. Umbrella policies can generally be purchased in increments of $1 million and can be affordable for the amount of coverage provided.
  • Renting out your condominium? Talk to your insurance agent about maintaining the appropriate level of homeowners insurance, look into a landlord policy, and mandate your renter carries their own renter’s insurance policy.

Contact your insurance agent to discuss your options, or contact one of our experienced agents at 1-866-294-2571 to learn more about condo insurance.

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