What is an HO6 Condo Insurance Policy?

All You Need to Know About HO6 Condo Insurance

If you are a condo unit owner, HO6 Insurance or  Condo Insurance is the best insurance that is right for you.  Most condominium companies obtain their insurance to cover mechanical systems such as elevators, air conditioning, the building, and common grounds. They ensure the property from inside to outside buildings. However, unit owners must have their insurance to protect their properties from inside the unit’s walls. From the inside property, unit owners must insure items like plumbing, kitchen cabinets, wall and floor coverings, and similar items.

Condominium Insurance companies usually cover these items as initially installed. However, you may want to make your home more comfortable by making alterations. In that event, it would be your responsibility to install new carpeting, renovating a bathroom or a kitchen. To ensure your unit, you need to review your condominium’s master policy first to know its coverage.

HO6 Insurance: Condominium Insurance Coverage

Reviewing your condominium’s master’s policy will tell you how much coverage you will need. It will help you identify the properties that you are responsible for. Moreover, it will help you understand guidelines to follow as required by the condo association agreement.  A Master Policy is the insurance policy that is owned by the condominium association. It covers the exterior areas of the building. Insurance companies for condominiums include a few standard coverages. These coverages protect you, your unit, and your belongings.

1. Liability and Medical Coverage


Liability and Medical coverage pay medical bills for injuries or accidents among your visitors while at your unit. It also lessens the legal expenses in case your visitor will file a case against you due to the injury. Without Liability Coverage, you could get stuck paying out of pocket medical and legal expenses that could be financially devastating.

2. Building Property Protection


Building Property Protection covers the repairs of fixtures in your condominium. This type of coverage includes built-in bookcases, hardwood floors, and valuable attachments. Thus, it is important to check the Condo Association’s Master’s Policy to know which attachments are included in their coverage. Knowing your condo’s master policy will lessen the amount of property coverage you need to purchase.

There are two types of master policy:


A. All In (All-Inclusive)

All-In means the master policy secures the interior and exterior areas of your condo unit. Therefore, you can only worry about securing your personal belongings, such as clothes, furniture, etc. Also, installations on the walls such as kitchen cupboards, toilets, or showers are under the all-inclusive policy.

B. Bare Walls In

This type of Master Policy covers your unit’s basic structure, such as your ceiling, floors, and walls but not the ones attached to them. You don’t need much building property protection if your condo association’s policy is all in. However, if it is bare walls, your building property protection will help pay for damages on the attachments.

3. Personal Property Coverage


Personal Property Coverage protects your possessions, such as appliances, electronics, furniture, and clothing. This coverage helps pay repairs or replacements if your belongings are stolen or damaged in a covered claim. For example, if a typhoon broke a window in your condo and the rain got in, making your furniture soak into the water, the Condo Insurance policy would pay for the window and the furniture’s replacement.

4. Loss of Use Coverage


Loss of Use Coverage is sometimes called the Additional Living Expense Coverage. This coverage is not as common as property or structural coverage, but it can be highly valuable. If your condo unit becomes unlivable due to extreme damages and needs an evacuation order, Loss of Use Coverage covers the extra expenses you use to maintain your regular standard of living. For example, suppose that an extreme fire burns your condo unit and makes you homeless. In this case, Loss of Use coverage will cover your room and board’s expenses at a different place while preparing your condo unit to become habitable again. Sometimes it even covers your transportation for longer commutes.

5. Loss of Assessment Coverage


This coverage is also called the Special Assessment Coverage. It is an optional coverage that you can add to your Condo Insurance policy. When the condo owners are financially responsible for a shared loss of a covered peril, loss of assessment coverage will take care of it.

For example, a fire has spread throughout the lobby of your condo building. As a result, it exceeds the limits of the Association’s Master’s Policy. Loss of Assessment coverage will pay for whatever share unit owners must contribute to mending for the condominium’s damaged parts.

Note: Each coverage has a limit. This limit is the maximum amount that a covered claim can reimburse you. Before your coverage comes in, you may need to pay a deductible. A deductible means the amount of money you pay out of your pocket toward a covered claim.

Condo Insurance

If you plan to leave your condo unit for a long time, typically at least 30 consecutive days, your Condo Insurance may not cover the damages that can occur during the vacancy. This is because insurers recognize unoccupied and vacant properties to be at a high risk since unit owners may not address accidents or break-ins as quickly as possible. You can purchase Vacant Condo Insurance to keep your property covered if you plan to leave for more than a month. It usually costs extra, but it helps lessen the costs of theft or any peril that could destroy property.

flood and earthquake
insurance for condominium

Condo insurance does not cover the damages caused by earthquakes or floods. Suppose you live in a high-risk area that is prone to earthquakes or floods; you may need to purchase separate coverage.  For both Homeowners Insurance and Condo Insurance, flooding is usually a separate peril. Therefore, it requires another purchase of separate insurance or coverage. Learn more about Flood Insurance.

Home much does
condo insurance cost ?

Depending on your personal property’s value and the type and amount you carry, Condo Insurance costs may vary. For example, you will need to add additional coverage if you own jewelry, collectibles, fine arts, or antiques. Thus, it is important that you make an inventory of your properties and calculate how much each of your items cost. Your inventory can help you determine how much Condo Insurance you will need. Moreover, before choosing your coverage limits, consider the added costs if you want to make alterations. 

The rate of your Condo Insurance may differ depending on which insurance company you choose. It also varies on which policies you include. Work with an insurance agent to help you choose the policies that are right for you. Agents can help you identify how much you will need to pay for your insurance policies. If you want to know the insurance policy rate you need, contact our agents now.

Tips on How to Save From Your Condo Insurance Costs

  • You can save on your HO6 policy by checking the coverage of your Condo Association’s Master’s Policy. By doing so, you can avoid purchasing additional coverages that are already covered by your Condo Association’s Master Policy. 
  • You can save from your Condo Insurance by having the time to compare quotes from different insurance companies. Various insurance agencies provide different types of coverage that can affect your yearly insurance rates.
  • Installing some devices such as smoke detectors or deadbolt locks can help you acquire discounted premiums. Most insurance companies automatically provide credits or discounts if you have installed these types of devices.
  • Increasing your deductible is also an efficient way to save money from your Condo Insurance. However, you have to make sure that you have enough savings to cover the deductible to avoid putting yourself in a position of being unable to pay in case of a disaster.

Overall, HO6 Condo Insurance can protect you and your belongings from unfortunate events. Your Condo Association’s Master’s Policy does not include you and your possessions under their coverage. 

Moreover, it provides coverages that will help you pay for medical and legal fees when the unfortunate happens. Unit owners are not excluded from potential dangers. Without insurance, you may find yourself paying a large amount of money out of pocket. 

Getting Condo Insurance is always a smart decision. You work hard to make it feel like home. That’s why it is just right for you to protect it. Having the right coverage will help you protect your condo and all your belongings that are inside it. Get a Condo Insurance Quote Now.