Condo Insurance for Owners
Condominium insurance is has some important differences from regular homeowners’ insurance, just like the condo units themselves are different from single-family homes. The condo association or HOA likely has some insurance that protects its members. It is important to keep in mind the extent of coverage you have on the HOA policy when shopping for the additional protection of condo insurance. With HOA coverage, protection usually stops beyond the exterior walls. You are on the hook for any interior walls, fixtures and appliances, cabinetry, and your personal property. The HOA essentially protects the association from liability for accident or injury but does little as far as protecting the individual owners.
What is Condo Insurance?
Condominium owner insurance was created to protect you, the condo owner, from the possible losses not covered the HOA insurance. Owned property is what is covered in this kind of policy. In situations in which the homeowner (but not all members of the HOA) is found liable for any damages, this policy will help. For example, if a fire starts in your unit but also damages your neighbor units, this insurance pays.
How Condo Owner Insurance Works
Condo insurance covers the condo owner from losses due to wind, fire, theft, water damage and some other potential losses. Should face a loss, you will likely need to file a claim with both your condo insurance company and the HOA’s company as well, as some claims will likely include damage to both interior and exterior areas. Keep in mind that these policies don’t generally cover flood and earthquakes.
Kinds of Policies
There is the “all-in” policy for individual condos owners that pretty much covers everything inside the unit, including personal items and any liability for injury or accident that might happen inside the unit. A “bare walls” policy covers that which is outside of the unit, including the exterior walls, but nothing that is within the condo walls. This is generally what your HOA carries anyway.
It’s easy to understand how important the benefits of condo insurance are. You receive protection if you have from damage or theft of any personally owned property. You will also enjoy certain other protections from loss or liability should you be away from your condo home.