Condo Insurance

If you are buying a condominium you will require condo insurance to cover your unit contents, personal belonging and fittings and fixtures.

Condominiums are required to have a master insurance policy which covers the structure of the building against damage including fire. The condo master insurance policy would also cover the public areas of the building against loss due to personal injury.

Condo Insurance- Cover

While the general building and structure of the condominium is or should be covered by the master insurance policy it is important for the individual unit owner to ensure that their personal unit is fully covered by condo insurance against loss due to :

• Personal Injury
• Public Liability
• Burglary
• Interior Water Damage
• Interior Fire Damage

Master Condo Insurance Policy

The master condominium insurance policy will in most cases cover the following:

• The total exterior structure of the building including lawns and gardens, trees and shrubbery and eternal siding of the building. In most cases you will be responsible for your own windows.
• All Common areas including swimming pools, exerciser rooms, common roof decks, tennis courts and common rooms.
• Common building utilities including electrical, fire alarms, sprinkler systems, heating systems hot water systems, emergency lighting.

Master Insurance Policy

Before you purchase a condo it is imperative that you have a real estate attorney who thoroughly understands condominium law in your state thoroughly go through the condo docs including.

• Condo Docs
• Master insurance Policy
• All blueprints and Mylar’s
• The condo association accounts

Also check out the number of units that are owner occupied.

Condo Assessment

Just because there is a master insurance policy in place in your condominium doesn’t mean that you are covered. This is why it is so important to have your attorney check out the condo documentation. If there is a large deductible in the master insurance policy and a claim falls short chances are that the unit owners will be assessed a charge to meet the shortfall.

It will be wise for you when considering your condo insurance policy to get cover for any event that your attorney feels is not properly covered by the master insurance policy.

HO6-Condo Insurance Policy

In most States a condo insurance policy called HO6 is available. The HO6 condo insurance policy will provide insurance cover for the interior walls and for personal property held within the dwelling. A HO6 condo insurance policy will usually also provide liability coverage for the condo unit owner as follows:

This is a typical of the breakdown of an HO6 condo insurance policy

1. Coverage A – Dwelling: Declared Value.
2. Coverage B – Other Structures: Part of Coverage A.
3. Coverage C – Personal Property: $10,000 minimum.
4. Coverage D – Loss of Use: 50% of Coverage C.
5. Liability: Minimum of $100,000.
6. Medical Payments: Minimum of $1,000.