Protect your condo — and your belongings — with condo insurance from our partner Homesite Insurance Group
If you own a condominium, typically two insurance policies are required for complete coverage. Your homeowners' association (HOA) or co-op board is usually responsible for the master policy. The master policy usually insures the building itself and common areas of your condo, including the roof and walkways. Your personal property (what's inside the condo) is covered by the second policy, your condo insurance.
It's important to know which parts of your unit are covered by the master policy and which parts are your responsibility. Typically, the condo owner is responsible for insuring anything inside the unit, including fixtures, walls, and flooring. Some master policies cover the standard unit, but any upgrades are the unit owner's responsibility. Check with your HOA or co-op board to make sure you're fully covered.
What's covered under condominium insurance
Condo insurance protects your personal belongings from loss or damage due to covered perils such as fire, theft, smoke, and vandalism. If disaster should strike, depending on the type of policy you purchase, you will be reimbursed either the actual cash value or replacement cost value of your lost property.
Taking a quick home inventory will give you a good idea of how much coverage you need. The cost of buying new computers, televisions, furniture, and appliances can be crippling. Condo insurance can protect your financial future.
Most basic condo insurance policies also offer loss-assessment coverage. If your condo building should be damaged by a covered peril and the master policy doesn't cover the cost of repairs, the HOA may make an assessment. Your loss-assessment coverage can help pay your share.
If the worst should happen and your condo becomes uninhabitable due to a covered peril, your condo insurance policy provides loss-of-use coverage. This will help cover the cost of temporary living expenses if you're forced to relocate while your home is being repaired.
In addition to protecting your personal property, a basic condo insurance policy also provides liability coverage, should a third party get hurt in your home. Liability insurance can help cover the cost of medical bills and court costs if you're sued by a third party because of the accident.