Condominium insurance is coverage that protects against losses and damage to your condominium unit. Condo insurance or an HO-6, provides coverage to theft, vandalism, fire damage, certain kinds of water damage, and more. Your condo policy provides coverage for your unit, your personal belongings or contents, loss of use, and liability.
Your condo policy needs to be written correctly so that it works in conjunction with your association's master policy. We take the time to review your condo documents, such as your by-laws and trust agreements, to be sure your policy is written correctly. Many associations insure the entire structure and have "All-In" coverage, but some require you to insure "Studs-In". Do not make the mistake of purchasing the wrong condo policy. Speak to one of our agents to be sure that you are properly covered.
As an independent insurance agent, we represent many fine insurance companies and we place your policy in the company that best suits your individual needs. There are several endorsements and coverage options available. We will go over them to tailor the policy to help assure you are properly covered.
COVERAGE A – DWELLING
The HO-6 (Condominium Unit Owner’s Insurance) can cover your unit. We review your condominium’s by-laws and insurance documents to help you determine this amount.COVERAGE C – PERSONAL PROPERTY
Covers personal property, with maximum limits for the theft and loss of particular classes of items (e.g., money, banknotes, bullion, coins, medals, jewelry, watches, furs, silverware, stamps, guns, etc.). Your personal property or contents are covered on an Actual Cash Value (ACV) basis. ACV will pay the cost to replace your belongings, minus deprecation. We strongly recommend adding Personal Property Replacement Cost. This endorsement will reimburse you for the full, current cost of replacing your belongings at today's values.
COVERAGE D – LOSS OF USE / ADDITIONAL LIVING EXPENSES
Covers expenses associated with additional living expenses (i.e. staying in a hotel).
The standard Condo policy has several exclusions. Specific exclusions will be stated in this section. These generally include earth movement, certain types of water damage, power failure, neglect, war, nuclear hazard, septic tank back-up expenses, intentional loss, and flood.
Flood damage is typically excluded under the Condo policy. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers. We will determine if your property falls into a special flood hazard zone. Most mortgage companies/banks require that you carry flood insurance if you are in a special flood hazard zone such as AE or VE.
COVERAGE E – PERSONAL LIABILITY
Covers damages for bodily injury and property damage which you are legally liable for and provides a legal defense at the insurance company’s own expense.
COVERAGE F – MEDICAL PAYMENTS
Covers damages for any medical expenses to others if they are hurt on your property. Legal liability is not a requirement to collect under this coverage.
OR THIS…. From our blog:
Whether you live in a home of your own, an apartment in a multi-family tenement, or a condo on the golf course, everyone should have a Homeowner’s policy to insure their home and/or belongings.
There are typically three types of homeowner’s policies, each written on a similar form. An owned home is written on an HO-3 form; a tenant’s or renter’s policy is written on an HO-4 form; and a condominium policy is written on an HO-6 form.
All three policy forms include personal liability coverage. Personal liability provides financial protection in case you are sued or held legally responsible for bodily injury or property damage to a third party. Covered expenses include: the amount the insurer spends to investigate or defend the claim or lawsuit; attorneys’ fees, witness fees; police report costs; court costs or other costs assessed against you; reasonable expenses you incur at the insurance company’s request to aid in your defense against a claim, such as your loss of income for a day spent in court; a judgment or settlement arising from a covered lawsuit; and any required interest on the judgment if the defense is unsuccessful and medical expenses for injured parties. You can purchase liability limits from $100,000 to several million.
The Tenant's or Renter’s policy insures your personal belongings in your apartment. It also gives you some coverage for your belongings while away from home. When deciding on how much coverage to purchase, think about everything in your home and what it would cost to replace it all if a catastrophe struck.
There are so many renters out there that have not considered purchasing a policy. The landlord’s policy does NOT cover the tenant’s belongings. We have seen a lot of fires and burst pipes where the tenants did not have any insurance. A basic Tenant’s policy covering $15,000 of your belongings could cost less than $150 per year.
The Homeowner’s policy is similar to the Tenant’s policy, but it insures the dwelling itself and any other structures that you have on the property, such as garages, sheds, fences, and flag poles. It also provides coverage for your personal belongings. Like the Tenant’s policy, it includes personal liability coverage.
The Condo policy is a mix between the other two types of policies. It includes coverage for your personal belongings and coverage on that part of the dwelling for which you are legally responsible. You will have to look at your deed or your condominium agreement/ by-laws to find out what you are responsible for and what part the association is responsible for insuring. We can help you determine the correct amount of insurance to select. This policy also includes personal liability.
All three of these policies include additional living expense coverage. If you have a loss to your home, condo, or apartment that requires you to move out temporarily while repairs are being made, this coverage will pay for most of those additional living expenses. For example, if you have to move into a hotel for a few weeks after a fire in your home, your hotel bills get paid for.
With the advent of managed auto competition in Massachusetts, most auto insurance companies will give you a credit for having both an Auto policy and a Homeowner’s policy in the same company. Many companies give you a credit on both policies.
This was just a brief overview of the Homeowner’s policy. There are many more things the policy covers and several endorsements you can add to tailor the policy to your unique individual need.
While most insurance products are similar in price and function, insurance providers vary when it comes to structuring a policy tailored to you.
After all, there is no such thing as a one-size-fits-all insurance policy when it comes to your personal property.
Contact us today, and we will help you protect what matters most.