Condo Insurance or “HO6” is a type of property insurance that can cover your belongings from unprevented loss damages shortly. HO6 policies can also cover the insured's dwelling's interior design — but bound for betterments and improvements of the interior only. Other than that, this can also provide you additional living expenses and liability coverage.
The major difference between regular Homeowners' Insurance and Condo Insurance policy is that Condo Insurance can only cover the interior of the dwelling. Otherwise, both insurances are similar in covering the personal property, additional living expenses, and personal liability of the insured.
Condo Insurance can provide dwelling coverage if the damages are due to named perils only, including fire damages. However, coverage for the dwelling damages is limited to its interior only. It can cover the interior for its improvement and betterments only. Furthermore, Condo Insurance would cover everything that is attached inside the condo.
This coverage can protect the condo owner's personal belongings. Its personal belongings, such as the owner's furniture, clothes, and other movable things that the owner has inside the condo. This coverage can reimburse you by replacement cost basis or actual cash value basis, depending on the condo owner's policy.
Note that this insurance can only cover your personal belongings if the damages are due to specific perils provided on the condo owner's policy. Examples of this covered peril are fire, explosion, hailstorm, and other more. However, the most common excluded perils that can cause damages are floods, earthquakes, etc.
Liability Coverage would cover the insured's legal obligation to others. To be specific, to the people who are not living inside the condo. For example, a visitor got an injury inside the condo premises; this coverage can cover the cost for the treatment of the visitor's injury. Other than that, this can also provide legal assistance if the injured person files legal claims against the condo owner.
This coverage can cover the condo unit owner from additional living expenses if the unit is under renovation. Take note that the living expenses are limited only to clothes, foods, hotel accommodation, and toiletries only.
Loss Assessment Coverage provides protection for specific types of losses, including damages to the building and other shared common areas, including garages. However, damages to the insured's car are not applicable for coverage; therefore, you must purchase Car Insurance for that. Get a Free Auto Insurance Quote Here, and let us help you with the losses you might encounter in the future.
As a condo owner member, you have an obligation to pay your share for those losses. Loss assessment coverage could pay your share for those losses, which is typically assessed by the homeowner association. This coverage is applicable to property damages, injury on the premises, or liability. Also, it can be applied to the deductibles of the master insurance policy.
Vacant Condo Insurance
A standard Condo Insurance policy could not cover claims of damages if your condo unit is vacant for at least 30 consecutive days. Since your property is unoccupied or vacant, many insurance companies would consider this to have a higher risk. It is for the reason that damages could escalate quickly and theft of the belongings are more probable.
Therefore, to ensure that your property and belongings are protected, ask your insurer that you want to purchase Vacant Condo Insurance. Get help from our experienced insurance agents regarding this insurance and Contact Us for more information.
Ownership of a condominium unit has a big difference in owning a single-family home. If you own a condo unit, you are also a shareowner of what they call a “limited common element”.
Generally, all the shared areas in the building of the condominium are covered by a “master insurance policy.” This policy provides coverage to hallways, elevators, and the exterior of the building, such as the roof. Typically, the cost to purchase this policy is shared or divided to all condo unit owners.
Bare Walls-In Coverage
Bare Walls-In Coverage is generally designed to cover the commonly-used areas in multi-family residential buildings. This insurance would cover the exterior framing of the building, as well as some furnishings and fixtures in the common areas. In addition, it could also give coverage to the property of the condo association. However, this is not applicable to cover the belongings inside your unit, so it is much better to purchase your own Condominium Insurance.
All-in Coverage policies are the most comprehensive condo master insurance policy. This policy would cover all the property that is collectively owned by the condo unit association. Also, all the structure is part of the condominium building, including all the additions and improvements to the condo.
This is the most comprehensive coverage since it could also cover the belongings that are only available inside the owner's units. All-in Condo Insurance could apply to the losses of your own ceiling, walls, and floors.