While most owners or condominium association insurance policies (master policies) cover the building exterior as well as common areas like hallways and entryways, they also cover elevators, boilers, roofs in order to protect the association from both liability and property damage. However, your individual condo or town home is your responsibility.
The articles of your condominium association or bylaws determine exactly what’s covered under the association’s master insurance policy. These agreements will identify exactly where the association’s liability stops and where the liability on your unit begins. Your liability could include permanently attached fixtures, glass, drywall, doors, flooring, cabinets, appliances, as well as you personal property and liability.
To protect your belongings and yourself, you should purchase a Condo Insurance Policy (HO-6 policy) that is designed for condos and co-op apartments. You should purchase a Condo Insurance Policy (your renters should have an HO-4 policy) if you own, but rent your unit too. Many people discover too late that they are not adequately covered by their association’s insurance policy.
Typical Types Of Coverage Your Policy May Have
HO-6 Condominium Insurance Policy
- Dwelling Coverage A generally insures the interior walls, drywall, wallpaper, paneling, flooring, carpeting, or built-in cabinets from covered hazards such as fire, lightning, windstorm, hail, explosion, collapse, smoke, or vandalism.
- Other Structures Coverage B generally insures structures such as a detached garage, storage shed, or carport.
- Personal Property or Contents Coverage C insures your personal belongings inside the unit such as a furniture, clothing, electronics, jewelry, dishes, etc.
- Loss of Use Coverage D provides help for living expenses such as room and board and dining when your unit is uninhabitable due to a covered loss.
- Personal Liability Coverage E pays for defense and damages in the event you are involved in a lawsuit where you are being sued for damages caused to another person or another person’s personal property.
- Medical Payments Coverage F (also known as MedPay) pays the necessary medical expenses in the event someone is injured in your unit and you wish to pay the medical bills (pays regardless of your legal responsibility).
Endorsements
- Additions and Alterations Coverage (also know as) improvements and betterments, provides a additional coverage or full value for the upgrades to your unit such as flooring, appliances, kitchen cabinets, etc.
- Earthquake and Flood Coverage extends coverage for these situations (excluded in most HO-6 policies).
- Home-based Business Insurance Coverage provides additional protection for business equipment and extra liability for clients coming into the unit.
- Loss Assessments Coverage pays for assessments against you by your condo or co-op association you may be forced to pay.
- Personal Articles Floater Coverage provides higher limits for your special property such jewelry, fine art, furs, postage stamps, rare coins, and high-end electronic equipment.
- Sewer Backup Coverage provides protection for personal property and structure damage loss due to a sewer backup.
- Umbrella Liability Coverage offers an additional $1 million to $5 million of liability coverage for bodily injury and property damage.
You need a personal insurance agent to sort it all out! Covington Insurance Agency is an independent insurance agency dedicated to finding you the comprehensive insurance coverage you need at a competitive price.
Contact us today for an insurance assessment and free personal insurance quote.