What is condo insurance?
Condo insurance is a lot like homeowners insurance — it’s there to help you protect the things that make your home a home, in case of damage or theft. In the industry, it’s known as an HO-6 policy, and it goes beyond an HOA’s insurance coverage. When you live in a condominium, co-op or townhome, the roof, exterior walls and grounds belong to your HOA or co-op. Your own policy covers what’s inside — your walls, ceilings and floors, cabinets and furniture, clothing and cookware — plus accidental injuries to others.
Condo insurance coverages
A Farmers condo policy typically includes:
- Personal property coverage to help pay costs if your furniture, clothing and other belongings are stolen, damaged or destroyed.
- Personal liability protection to help pay legal, medical and other expenses if you’re responsible for damage or injuries to someone else.
- Loss of use coverage to help pay extra rent and other costs if you have to live elsewhere during repairs.
- Unit owner’s building coverage to help with damage to your condo’s interior — walls, cabinets, lighting — if it’s not covered by your HOA’s policy.
- Association loss assessment coverage to help if your HOA assesses you for a share of a major building expense, like a new roof.
What does condo insurance cover?
1. Your belongings
Example: A burglar breaks in and steals your TV, video game box and golf clubs.
How it works: Personal property coverage can help you replace your stolen property, even if the theft happens away from home.
2. Living expenses/loss of use
Example: A leak in the condo upstairs leaves your condo uninhabitable.
How it works: Additional living expenses coverage can help you pay for a temporary living space, plus extra food and transportation expenses.
3. Loss assessment coverage
Example: Wind tears the roof off your condo complex. Your HOA assesses each unit owner $5,000 to cover the unexpected cost.
How it works: Your loss assessment coverage can help pay your share of the assessment.
What is not covered by condo insurance?
A condo owner’s insurance policy doesn’t cover damage to shared structural elements, such as exterior walls and roofs, as well as grounds and common areas. A typical HO-6 policy also does not cover certain risks, though a separate policy or extra coverage may be added. They include:
- Earthquakes
- Flooding
- Sewer backups
- Liability costs above your coverage limit (but you can raise your limit by adding an umbrella policy)