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Home Insurance

Condo Insurance 101

Wondering if you should buy a condo insurance policy? Find out what condominium insurance covers, how much it costs, and how much you should have.

What is condo insurance?

Much like renters insurance, condominium insurance exclusively covers the interior of your condo unit. Insurance for an individual condominium unit is referred to as a HO-6 policy. These specific policies would provide you with coverage for a range of loss and can be customized to include expensive possessions like jewelry or artwork. Typically an HO-6 policy will cover:

  • The interior walls

  • Your appliances

  • Personal property

  • Liability claims in the event of a person’s injury or property damage

  • Legal fees due to a lawsuit

  • Loss of use in the case your unit is considered uninhabitable due to fire or storm damage

Anything outside of your specific unit, such as the exterior walls of the building and hallways, is usually the responsibility of your condo association and their master policy. Condo association policies are referred to as HOA policies. It’s always best to check with the association’s HOA policy so you know exactly what it does and doesn’t cover before there’s a reason to file a claim.

What exactly is a condo association’s master policy?

Because your personal HO-6 condo insurance will cover whatever your association’s master policy doesn’t, it’s important to understand where there could be gaps in your coverage before shopping for a policy. There are two types of condo association master policies:

  1. ”All-in” condo master policy: This policy is also known as a “single unit” policy. It covers certain appliances in your unit such as the wiring, plumbing, and carpets. It doesn’t cover personal property.

  2. ”Bare walls” condo master policy: This type of policy doesn’t cover anything within your unit. It may or may not cover plumbing and electrical cost depending on your association. If your condominium has this type of policy, you’ll have to purchase more of your own coverage.

How does condo insurance work?

Because there are two kinds of condo insurance -- individual and association -- it can be difficult to understand which carrier to file a claim with in the event of damage or an accident. It’s easier to think about policies in terms of who owns what. For example, if your unit was exclusively broken into and burglarized then you would file with your agent. However, if the burglary also resulted in damage to the front door then that specific damage would be filed with your association’s agent.

How much does condo insurance cost?

Like any other kind of insurance, policy prices vary based on a number of factors. The average cost can range from $100 to $400 a year depending on the amount of coverage you select and the value of your personal property. To find the best deal on insurance, it’s best to compare quotes on a site like Insurify. Insurify allows you to build, customize, bundle, and purchase insurance policies online in minutes. Remember that bundling your auto and condo insurance under one provider can unlock some serious discounts.

How much condo insurance do I need?

Everyone requires different amounts of condo insurance coverage depending on their unit and possessions. You can get a rough estimate by taking inventory of your personal items and calculating how much it’d take to replace them in the event of a robbery or fire. So for example, if you own about $20,000 of furniture and $10,000 worth of jewelry and clothes you should borrow $30,000. Just remember that this is only a rough estimate. To be completely protected you should connect with your insurance agent to ensure you’re getting the right coverage for your needs and personal assets.