Condominium insurance (condo insurance) also called HO-6 insurance, covers the interior of your condominium unit as well as your personal belongings. It does not cover the exterior of your unit or the common areas. These areas would fall under your condo association’s master insurance policy. A typical condo insurance policy has some key coverage areas, these include:
1) Dwelling coverage (internal property): the walls, floors, and installed fixtures such as sinks and cabinets that may not be covered by the condo association’s master insurance policy
2) Personal property coverage: this protects your belongings including your furniture, electronics and clothing from damage or theft as a result of a covered incident
3) Loss of use coverage: in the event your condo is uninhabitable after a covered event, loss of use coverage will pay for your hotel stays, meals and other essential living expenses
4) Personal liability protection: if a guest is injured in your condo or has damage to their property and you are at fault, this type of protection will help with legal costs in the event claims are made against you
5) Medical payments to others: if a guest is accidentally injured on your property this coverage will pay for minor medical expenses up to your policy’s limits, even if there is no negligence on your part
If you are considering purchasing a condo, or maybe you currently live in one and are looking for new insurance, we highly recommend you understand the policy before you purchase or renew a policy. There are exclusions with condo insurance. For example, a condo policy typically excludes damage from regional hazards such as floods and earthquakes, intentional damage and wear and tear. We encourage condo owners to inquire about different adds on, such as flood insurance. Can you purchase flood insurance for your condo if your condo insurance policy doesn’t already include it? Come talk with us. There are options for specialized insurance for condos.
Condo insurance is grossly different from a typical homeowners insurance policy.
While a condo insurance policy covers the interior of your condo unit and personal belongings, a homeowners insurance policy goes beyond. A homeowners policy covers the entire structure of your home, property and exterior of a detached house.
A condo owner shares the cost and responsibility for their building’s exterior and common areas within the association. These costs are shared among all of the residents within the association. A homeowners insurance policy typically has higher premiums and provides a more comprehensive coverage for the entire property.
If I have a mortgage on my condo will I be required to carry condo insurance?
Yes. If you have a mortgage on your condo, your lender will require you to have an HO-6 policy. They may also require you to carry certain coverage and limits. We urge Florida residents to compare condo insurance requirements from different lenders. Some lenders may be slightly more flexible compared to others.
Your condo insurance coverage will depend on your unit’s value and how much personal property you own. It will also be dependent on the type of master policy your HOA carries. Condo insurance is not complicated; however, there are some nuances that can come up. We hope you will take the opportunity to call us at 407-644-9991 for a more in depth conversation about condo insurance. We may be able to save you money as well.
We look forward to helping you decipher how condo insurance can protect you. Feel free to stop by our Altamonte Springs office or give us a call. We are happy to walk you through the different options available when you purchase condo insurance.
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