What Does It Cover?" width="100%" height="145px" />As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Written By Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Lead Editor, Insurance Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
| Deputy Editor, Insurance
Updated: Dec 4, 2023, 4:28am
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What Does It Cover?" width="100%" height="145px" />
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As a condo owner, you don’t own the land or building your home sits on, but you still need good insurance for your unit and personal belongings. And you can’t rely on the homeowners association (HOA) master policy.
If you want coverage for problems not covered by the HOA master policy, like theft of your personal belongings or accidental injuries to others, you’re going to need to buy condo insurance. And in some instances, condo insurance may even be required.
Condo insurance is a mix of coverage types that protect your investment in your condominium in case of problems like fire, theft, accidental injuries to others and extra living expenses if you are temporarily displaced from your condo due to a problem covered by your policy. Condo insurance covers you for problems that are not covered by an HOA master policy.
An HO-6 insurance policy is the same as a condo insurance policy. It helps if your personal belongings are damaged or stolen. An HO-6 insurance policy also pays for repairs to the condo unit’s walls, floors and ceilings and any renovations made after you bought the condo.
An HO-6 policy also provides liability coverage and covers additional living expenses if you have to temporarily move from your home during repairs for a problem covered by your policy.
Co-op insurance works the same as condo insurance. It’s an HO-6 insurance policy that covers your personal belongings and additional living expenses if you must temporarily move after a property loss.
It also covers any renovations you made to the co-op after moving in and offers liability protection.
Condo insurance is generally required if you have a mortgage. Lenders require condo insurance since they have a financial interest in the property.
Even if you don’t have a mortgage, condo insurance is still a wise decision. Without coverage, you would be on the hook to pay for repairs to your condo unit and possessions if they’re damaged due to a problem covered by the policy, such as a fire.
A condo insurance policy covers your personal property, walls, ceilings and floors. It covers additional living expenses if you need to temporarily move after a problem covered by your policy. It also provides liability coverage, which can pay out to others if you’re legally liable for injury or damage to someone else.
Condo insurance fills in gaps that an HOA master policy doesn’t cover.
No, condo insurance doesn’t cover a building’s exterior walls, so it’s unlike a home insurance policy’s dwelling coverage, which covers the structure.
Condo insurance generally pays for repairs to the inside walls of your condo and other inside items like cabinets and built-in bookshelves if they’re damaged by a problem covered by the policy (like a fire). Damage to the outside of your condo unit is covered by the HOA master policy.
Example: A fire damages the building where your condo is located. Your condo insurance policy pays for repairs to your unit and damaged possessions like furniture and clothing, but it doesn’t cover the building or common areas.
Yes, condo insurance covers your personal property if it’s stolen or damaged by a problem covered by your policy, such as a fire. These items include your clothes, furniture, TV, dishes, pots and pans, rugs, musical instruments and jewelry up to the policy limits.
Example: A tornado rips through the area, breaking your windows and damaging electronics, furniture and clothes. Condo insurance pays to replace those items, but the amount that’s reimbursed depends on whether you have replacement cost or actual cash value coverage. Actual cash value pays to replace the items and takes into account depreciation, while replacement cost provides enough funding to replace the items as new.
Yes, condo insurance provides personal liability coverage that helps if there are accidental injuries and damage to others, such as your dog biting someone or your child kicking a soccer ball through a neighbor’s window.
Condo insurance also helps to a lesser degree for medical payments to others. That part of a policy covers medical expenses for minor injuries in your condo, like a guest who slips and falls on a wet kitchen floor.
Example: A visitor trips in your condo and dislocates their shoulder. Condo insurance pays for medical expenses and your legal costs if you’re sued.
Yes, condo insurance covers additional living expenses, also called “loss of use.” This coverage pays for extra living expenses, such as lodging, meals, laundry and pet boarding if you can’t live in your condo because of a problem covered by the policy, such as tornado damage.
Example: A tree crashes through your condo, leaving it inhabitable and forcing you to find temporary lodging. Condo insurance pays for extra costs associated with lodging, meals and other expenses associated with living elsewhere temporarily.
A standard condo insurance HO-6 policy typically covers damage caused by problems named in the policy, such as:
If you want expanded coverage for your dwelling, you might want to purchase an HO-17 32 endorsement. This expands coverage beyond the 16 named perils on a HO-6 policy to “all risks” (covers everything except for problems specifically excluded in the policy).
For example, damage caused by wind-driven rain is not covered by an HO-6 policy. If wind-driven rain comes in through a window, you wouldn’t be covered for the damage. An HO-17 32 endorsement would typically cover this type of loss.
If you want expanded coverage for your personal property, you can get an HO-17 31 endorsement. Similar to the HO-17 32 endorsement, this expands coverage beyond the “named perils” to “all risks,” so everything is covered except what’s specifically excluded.
Condo insurance covers disasters like lightning strikes and winter-related damage. It also provides tornado insurance.
A standard condo policy won’t cover flood damage. You can buy a separate flood insurance policy. Similar to homeowners insurance, condo insurance typically doesn’t cover earthquake damage, but you can buy separate earthquake insurance.
Common exclusions in a standard HO-6 condo insurance policy include:
Condo insurance companies often provide coverage beyond personal property, liability and additional living expenses coverage. Extra coverage types that you might be able to add to your policy include:
Homeowners association (HOA) insurance, often referred to as the “master policy,” typically covers everything outside a condo unit, such as the building (including the exterior walls and roof) and shared spaces such as hallways, stairwells, elevators and swimming pools.
When buying condo insurance, it’s vital to understand your HOA’s insurance coverage.
An HOA master policy is usually one of two types:
The HOA master policy also covers injuries to guests in common areas. For example, if a guest tumbles down a common stairwell, the master policy could cover the medical expenses.
If you have a mortgage, the lender will most likely require condo insurance. Your HOA might also require it.
Once you understand how much your HOA master policy covers, you can fill the gaps in coverage with your HO-6 condo insurance policy, such as personal belongings and coverage for walls, ceilings and floors.
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You want enough condo insurance to cover what you could lose in a worst-case scenario, such as a fire.
Depending on what the HOA master policy covers, here are some things to consider to determine how much condo insurance you’ll need:
Having a home inventory can be crucial for making an insurance claim for everything you’re entitled to, especially with a large claim. If you can’t remember everything you had, you won’t know to include it.
A standard condo insurance policy typically replaces your personal items based on actual cash value (ACV), meaning it will only pay the depreciated value of your item. If you want your belongings replaced with new, similar items, you can typically buy replacement cost coverage. Replacement cost coverage is more expensive than ACV, but it’s generally better coverage.
If you have certain high value items, like jewelry or a family heirloom, you may want to schedule the personal property. This insures specific items under a separate insurance endorsement.
Scheduling specific items lets you insure expensive items for their full value and separately from the rest of your belongings.
Condo insurance typically has what are called “special limits” or “sub-limits” for certain types of items if they are stolen. By scheduling specific items you can insure them for their full value and separately from the rest of your belongings.
For example, your policy might have a $1,500 sub-limit for stolen jewelry. If you have a $5,000 watch and it is not scheduled, you would only be covered up to $1,500 if it was stolen.
This optional coverage is also called “special assessment insurance.” It helps cover costs in situations where the condo association’s master policy won’t.
For example, say a fire damages the elevator and hallway in your building, causing $350,000 worth of damage. If the condo association’s master policy has $300,000 in coverage for the building’s structure, that leaves a $50,000 shortfall. The condo association could divide this remaining cost among the building’s condo owners.
Loss assessment coverage can pay for this additional cost. Without it, you could face large and unexpected costs.
Condo insurance costs an average of $445 a year, according to Forbes Advisor’s analysis of condo insurance rates. This average cost is for a condo policy with $100,000 in personal property coverage, $300,000 for liability coverage and a $1,000 deductible.
