Condo Insurance Coverage
Condo insurance, also known as H06 insurance, is coverage designed specifically for condo owners. There are key differences between homeowner’s insurance and condo insurance. Read on to learn more.
Interior Structure
When you own a home, you own the land and everything on it, including the main house, any other structures on the property, the pool and spa, etc. All of this needs to be insured.
When you own a condo, your HOA’s master insurance policy covers the building structure, common areas, and outside land. You’re only responsible for what’s inside your unit.
Condo insurance covers the interior structure of your condo—things like flooring, interior walls, countertops, and fixtures. It also covers the cost of renovations you make, like adding granite countertops or replacing laminate flooring with tile.
How much condo coverage you’ll need depends in part on how comprehensive your HOA’s insurance policy is (more on that ahead).
Personal Property Coverage
Personal property coverage is one of the most important parts of a condo insurance policy. Your HOA’s master insurance policy does not cover your personal belongings.
Condo insurance covers household items like furniture, electronics, furniture, clothing, and kitchen items; you may also need to add coverage for valuables like jewelry, artwork, antiques, and musical instruments.
You’ll need to take an inventory of all your things to determine how much personal property coverage you’ll need.
Liability Coverage
Condo insurance protects you from liability if someone is injured inside your condo or if you accidentally injure someone away from home or damage someone else’s property.
You don’t usually need liability coverage for claims involving common areas of your building, since this is covered by your HOA master insurance plan. For example, if someone is injured in the pool area of your condo building, this will likely be covered by your HOA’s insurance.
What HOA Insurance Covers
At a minimum, your HOA’s insurance policy will cover the exterior walls of the building, hallways, elevators, stairwells, pool/spa, and other common areas. Here are the main three types of condo association insurance:
- Bare walls policy: Insures basic building elements, such as exterior walls, roof, floors, elevators, and common areas. Does not cover the interior of condo units.
- Single entity condominium coverage: Insures basic building elements and standard fixtures and finishes inside condo units (like original flooring, cabinets, and countertops); it does not cover improvements made at homeowner’s expense (like new countertops, cabinets, appliances, etc.).
- Modified single entity condo insurance: Provides comprehensive coverage for standard fixtures and finishes and additions and improvements inside condo units made at homeowner’s expense; this is the most comprehensive type of condo association insurance policy.
Regardless of which type of insurance policy your HOA carries, you will still need a condo insurance policy that covers your personal property and provides liability protection.
Study your HOA’s insurance policy carefully to determine exactly what it covers, but keep in mind that insurance policies can be difficult to interpret. To avoid ending up underinsured, it’s best to consult an insurance professional for help understanding your HOA’s policy.
How Much Does Condo Insurance Cost?
Condo insurance usually costs less than homeowner’s insurance, since the building and common areas are covered by your HOA’s insurance policy. Still, condo insurance premiums can vary significantly depending on the value of your condo and where you live. Here are some factors that will impact the cost of coverage:
- How much coverage you need to make sure you’re fully protected
- Which coverage options you choose (such as additional personal property coverage for high-value items like jewelry and artwork)
- The deductible you choose
- Available discounts (e.g. multi-policy discount, gated policy discount, etc.)
- The location and construction of your condo
Get Help from Experts at Garvin Insurance Agency
Condo insurance is complicated. Which specific coverages you’ll need can vary significantly depending on several factors, including what’s included on your HOA’s insurance policy, your belongings, and your specific needs and budget.
The insurance experts Garvin Insurance Agency can help you understand your options and guide you every step of the way with a one-on-one consultation and estimates for condo insurance coverage.
We pride ourselves on our no-nonsense, highly flexible policies, and we work hard to deliver insurance solutions that bring you peace of mind.
Call us at (818) 881-5127 for a free quote today or drop in to our Woodland Hills office. We look forward to working with you.