What is Condo Insurance?
Condo insurance provides coverage for the inside of your condominium; the external areas fall under the jurisdiction of your condo association and must be covered under the association’s insurance policy.
Condo insurance policies typically cover what the condo association’s master policy doesn’t cover. A condo association master policy can be of two types:
- An “all-in” condo master policy: Also known as a “single-unit” master policy, this type of policy covers the fixtures in your condo such as the appliances, wiring, plumbing, and carpets, but does not cover personal property that you own.
- A “bare walls-in” condo master policy: This policy does not cover anything contained within your walls. It may or may not cover your condo’s plumbing and electrical systems. Be sure to carefully review the association’s master policy to determine what your condo insurance policy needs to cover.
You will need to buy more of your own condominium insurance if your association has a “bare walls-in” condo master policy than if it has “all-in” condo master policy.
Your condo insurance policy will cover you for loss or damage to your personal possessions, and provide coverage for personal liability and medical payments. Additionally, it will often cover loss of use in the event that your condominium becomes badly damaged by a fire or storm and you need to live elsewhere during repairs.
Insurance for a particular condo is known as an HO-6 policy. HO-6 policies typically provide you with coverage for a range of causes of loss. You may have to purchase additional coverage for specific items such as artwork, jewelry and other items of value.