What is Condo (HO6) Insurance and What Does it Cover?
If you’ve been keeping up with the real estate market you may have read there has been a mass migration from cities like Boston & New York to the suburbs. Home sales are up in Massachusetts and Connecticut, and condo and single-family home prices are setting records.
It’s natural to assume that homeowners insurance and condominium owners insurance are the same thing, because, after all, isn’t your condo your home? However, there are notable differences between the two. To help you understand condo insurance better, we put the following information together.
What is Condo Insurance?
Condo insurance is made up of two parts; one is your condo association’s master policy, the other is your personal condo insurance policy. The master policy is held by the owner of the building and the condo policy is held by you. Here are some key insights about the master policy.
- The cost of the master policy is shared by all unit owners, usually in the form of recurring condo or HOA fees.
- The master insurance policy typically only covers your condo complex, common areas, your building structure, and the exterior of your unit. This is because you don’t actually own the entire building in which your condominium resides.
- Your master insurance policy most likely does not cover your personal assets or anything inside your condo unit. It may not cover any damages or repairs within your unit either.
What is covered by the condo association or HOA master insurance policy?
The type of master insurance policy your HOA or condo association has will directly impact the amount of condo insurance you’d need to purchase. This is why your agent needs a copy of the master policy declaration page, which details exactly what the master policy will cover.
There are two main types of master policies
- All in: If your master policy has an “all-in” option, it will usually cover original items built into your unit, including appliances, lighting fixtures, wiring, and plumbing.
- Bare walls: If your HOA uses a “bare walls” policy, it only covers the structure of the condo and common areas — things that are collectively-owned.
Personal property is not protected under the master policy
Regardless of whether you have an “all-in” or “bare walls” type of master policy, it does not cover your personal belongings. Your personal condo insurance will typically protect all of your belongings and possessions. Including items like computers, TVs, clothing, and furniture. If you have a home office, depending on the nature of your business, we can make sure it’s protected.
What the major of personal condo policies will also cover
- The permanent fixtures in your condo — walls, ceilings, countertops, etc.
- Your personal property — furniture, electronics, appliances, clothing, etc.
- Theft, fire, or vandalism.
- Hotel, restaurant, or similar expenses you may incur in the event that your condo is unusable due to covered loss.
- Legal responsibility or court expenses you may incur in the event that you are sued for bodily injury or property damage as a result of your negligence.
- Medical payment to others for injuries that occur at your condo or are caused by you or your pet.
Condo Insurance will help protect you against liability
Like a homeowner’s policy, condo insurance includes personal liability and covers your financial responsibilities and legal fees if someone is injured in your condo.
At Bearingstar we can review the master policy and help you understand what insurance you need as you make the move to your new condo. We will be sure whichever policy you choose will fill the gaps left by the master insurance policy, and provide coverage in the critical areas where you still need coverage.
Your local Bearingstar agent has a full understanding of the unique needs of condo living in the Massachusetts and Connecticut areas. They can also help you save money if you decide to insure both your condo and car with the same company.
Call us today for an insurance quote, or request a quote online.