Condo insurance is often overlooked yet essentially protects what might be your greatest investment, your home. For many condo owners, understanding the ins and outs of this insurance policy can be a bit overwhelming and confusing. Those who live in a condo often feel they do not need to have any insurance. Today, InsureWise would like to cover the importance of condo insurance, explain its workings, and highlight its importance.
What is Condo Insurance?
Condo insurance, also known as HO-6 insurance, is a type of homeowners insurance specifically designed for condominium owners. It provides coverage for the interior of the condo unit, your personal belongings, and liability coverage should someone get hurt on your property. It can also cover additional living expenses if your condo becomes uninhabitable due to a covered loss.
What Does a Condo Insurance Policy Cover
Personal Property Coverage – This is one of the most important features of condo insurance. It covers your belongings within your condo unit. This can include your furniture, appliances, clothing, electronics, and other personal items. If these items get damaged due to fire, theft, or vandalism, your insurance policy would cover the cost of repair or replacement.
Building Property Coverage – Unlike traditional homeowner’s insurance, which covers both the interior and exterior of a home, condo insurance typically only covers the interior of the unit. This includes elements like walls, floors, ceilings, and fixtures. However, each condominium association has a master policy that determines what the association’s insurance covers and what the unit owner is responsible for. It is important to understand your condo association’s master policy to know the extent of coverage you need for your unit.
Liability Coverage – This aspect of condo insurance protects you in case a visitor gets injured within your condo, or if you accidentally damage someone else’s property. The insurance policy can cover legal expenses and any potential medical or repair costs.
Loss of Use or Additional Living Expenses – If your condo becomes uninhabitable due to a recent incident such as a fire or a storm, this coverage can help with the additional costs of living somewhere else while your home is being repaired. This can include hotel bills, restaurant meals, and other living expenses.
Loss Assessment – This coverage comes into play when the condo association charges assessments on unit owners due to a loss on the shared property that exceeds the limit of the association’s policy. For instance, if a fire damages the building’s roof, and the repair costs are higher than the master policy’s coverage, the condo association may assess the extra costs to the condo owners. Loss assessment coverage can help you pay for your share of these unexpected costs.
Why is Condo Insurance Important?
Condo insurance is essential because it helps to fill in the gaps that your condo association’s master policy may not cover. It provides protection for your personal property, offers liability coverage, and covers additional living expenses during a crisis. In addition, it helps you avoid paying out of pocket for unexpected costs associated with loss assessment.
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If you live in a condominium and do not have condo insurance and want coverage, contact InsureWise or click here to submit an online quote form. We can help you find the best condo insurance to meet your needs.