Get a Quote for Affordable Condo Insurance Coverage
While individual condo insurance (HO-6 policy) isn’t required by law, most condo associations require it. In addition, mortgage lenders often require borrowers to maintain an HO-6 condo policy as a condition of their loan.
What Does Condo Insurance Cover?
Not to be confused with a Condo Association “Master” Policy, a condo HO-6 insurance policy is for individual condo owners, providing coverage for their personal belongings, interior structures, and personal liability within their units.
Individual condo insurance typically offers financial protection against damage caused by fire, water damage, theft, severe weather, and injury.
Condo Insurance vs. Master Policy Coverage
Generally, an individual (HO-6) condo insurance policy covers:
- Personal Property: furniture, electronics, clothing, appliances
- Unit Protection: structural elements within your unit, such as walls, ceilings, floors, and fixtures
- Personal Liability: if someone gets injured in your unit
- Loss Assessment: if you are assessed a share of the cost of a loss to a common area
On the other hand, a Condo Association Master policy typically covers:
- Property Damage to Common Areas: the building’s exterior walls, roof, swimming pool, outside grounds, elevators, common hallways, etc.
- Communal Area Liability: if someone gets injured in a common area of the condo
Insider Tip:
It is vital to understand what your condo association covers and how it handles special assessments. An agent can help you navigate the boundaries of your association’s master policy to determine what you’re responsible for covering.
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Don’t hesitate to reach out to one of our insurance agents experienced in serving the unique needs of military families.
Other Types of Condo Insurance Coverage
Loss of use and loss assessment coverage can be helpful add-ons to your condo insurance plan. Let’s review how they work.
Loss of Use Coverage
Loss of use coverage pays for temporary living expenses in cases where your unit becomes uninhabitable due to a covered peril.
Scenario: After a fire breaks out in your kitchen, the rest of your home is uninhabitable until it can be repaired and cleared of smoke damage. Thankfully, your loss of use coverage covers the cost of a hotel stay until your unit is repaired.
Loss Assessment Coverage
Loss assessment offers individual condo owners financial protection by helping cover their share of assessments during unforeseen events.
A condo special assessment fee is an additional, one-time charge imposed on condo owners by the condominium association to cover unexpected or significant expenses such as major repairs, renovations, or emergencies that go beyond the regular monthly association fees.
Most special assessment fees are split equally between residents, so if a storm causes $30,000 in damage and your building has 60 residents, each resident must pay $500. Loss assessment coverage might cover that cost for you.
Loss assessment offers individual condo owners financial protection by helping cover their share of assessments during unforeseen events.
A condo special assessment fee is an additional, one-time charge imposed on condo owners by the condominium association to cover unexpected or significant expenses such as major repairs, renovations, or emergencies that go beyond the regular monthly association fees.
Most special assessment fees are split equally between residents, so if a storm causes $30,000 in damage and your building has 60 residents, each resident must pay $500. Loss assessment coverage might cover that cost for you.
Scenario: After a large storm, your condo association imposed a special assessment to cover the extensive damage to common areas. Since your condo’s bylaws provide for special assessment charges, you are prepared with loss assessment coverage, which covers your share of the fee.
Why Choose Veterans United Insurance?
Here at Veterans United Insurance, we are committed to ensuring our service goes beyond the standard. Our goal is to offer a personalized approach to providing you with the level of coverage you prefer and need.
Alongside Veterans United Home Loans, the #1 VA lender in the nation, we take pride in providing Veterans and service members with high-quality service and competitive rates.
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Condo Insurance Frequently Asked Questions
Do I need condo insurance?
There is no law requiring you to hold condo insurance like there is for auto insurance. However, it is likely required by your condo association and mortgage lender as a part of your contracts.
Do you need condo insurance if you’re renting?
If you are renting a condominium unit, you generally do not need condo insurance.
As a renter, your insurance needs are different. In the case of renting a condo, it’s highly recommended to buy a renters insurance policy.
How much is condo insurance?
The cost of your condo insurance will vary depending on the value of your condo, the property’s location, and the level of coverage.
Condo Insurance vs. Homeowners Insurance
Condo and homeowners insurance are both types of property insurance, but they differ in terms of what they cover.
Condo insurance does not cover common areas or the exterior of the building’s structure since it falls under the responsibility of the condominium association’s master policy. Homeowners insurance covers the entire structure of the home, including the dwelling itself, attached structures (like a garage), and outdoor structures (such as sheds).
Condo insurance policies are usually less expensive than homeowners insurance because they cover a smaller portion of the property.
Get Connected with an Agent Today!
Don’t hesitate to reach out to one of our insurance agents experienced in serving the unique needs of military families.
How does condo insurance work?
If a perilous event does occur, your first step is to contact your condo insurance company to let them know what happened. Your provider will evaluate the situation and your policy and let you know if your insurance covers your losses.
Remember, H-O6 condo insurance often provides liability coverage, so you can reach out even if someone is injured or their property is damaged within your home.
In cases where a common area of your condo is damaged, notify your condo association so they can contact the master policy insurance company.
