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Condominium Insurance
Condominiums and
townhouses have special insurance needs. They don’t need as much insurance as a
house, but owners have more to insure than a renter. The insurance needs for a
condo owner include personal property and liability coverages. Special policies
for condominium owners, known as form HO-6, will provide the liability and
personal property protection a condominium owner needs.
As a condominium
owner, one needs to insure not only their personal possessions in the condo, but
also any built in units such as cabinets, fixtures, appliances and shelves. In
addition to covering the personal property, a condo owner also needs liability
coverage. The liability portion of the policy would cover injures or damage to
people or property for which the condo owner would be liable.
Below is a checklist of the
top four questions to consider when choosing a condominium insurance policy:
1. What are
your ownership and insurance responsibilities in the condo association’s Master
Deed (the insurance requirements the association expects from you)? Check with
your association if you are unsure.
Almost all associations have
a master policy insurance that covers the actual structures and common elements
such as a swimming pool or tennis court owned by all unit owners. The
association documents and the master insurance policy spell out very
specifically where common areas end and where your unit starts. In some cases,
for example, your unit may start inside the wallboard. In others, the wallboard
may be considered part of your unit.
2. Does the
policy you are considering include broad water damage coverage for problems such
as sewer and drain back-ups? Are these available as options?
3. Does
your condo association provide comprehensive or blanket coverage to protect you
against other condo owners who may not have adequate coverage?
4. Do you
have expensive personal items such as jewelry or furs for which you may need
additional (scheduled) personal property coverage?
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