As a condo or townhouse owner, you don’t need traditional homeowner’s insurance. Your HOA policy protects the exterior of your home, and unlike a homeowner, you don’t have any other structures to worry about. But you still need insurance to protect the interior of your home. Fortunately, condominium insurance is much more affordable than homeowner’s insurance.
Not every insurance company offers condo insurance. At The Brandes Insurance Agency, we specialize in helping condo and townhome owners like you get the insurance coverage you need. Together, we’ll create a customized HO6 policy to protect your asset.
Your condominium insurance or HO6 policy typically protects the interior of your home. It includes your wall coverings, flooring, and any additions you made. The policy also covers your belongings, which include your furniture, décor, and clothing.
Much like a homeowner’s policy, your HO6 includes a liability portion. This covers legal expenses in case anyone gets injured in your condo or you accidentally damage their property. Having liability coverage is important, because it protects your financial assets, including your condo. Even if you prevail in court, defending a legal claim is expensive without liability insurance.
Finally, your condo insurance also includes coverage for additional living expenses if a covered claim makes your home uninhabitable. Additional living expenses can include the cost of a hotel stay and even getting takeout food while your condo is being repaired.
Your condo’s HOA policy protects the exterior of your condo. For example, if a storm damages the walls or a tree falls onto the building, the HOA’s policy would be responsible for restoring your condo. Your HOA may only have bare wall coverage, which means it only covers the structures of the condominium complex.
If your HOA has single entity coverage, insurance will also replace built-in fixtures like cabinets if a covered incident resulted in the damage or destruction of yours. Finally, if your condo’s HOA has all-in coverage, you have the most comprehensive coverage that even covers your improvements and additions.
If you own a townhome, you may need townhouse insurance. If your townhouse is covered by an HOA with a master policy but you share walls with other unit owners, your HO6 policy will cover the interior. Keep in mind, the HO6 policy only covers the interior of your townhome. If you’re responsible for the exterior structure or the roof as well, you may need HO3 insurance instead.
Your HOA is only responsible for the exterior structure of the building. Sometimes, the HOA policy includes improvements you made to the interior of your condo. But for the most part, your interior has to be insured separately with an HO6 policy. The HO6 policy covers your walls, flooring, furniture, and belongings in case of theft, vandalism, fire, lightning, storms, falling objects and more. Finally, it includes a liability portion to protect your financial assets in case of a legal claim against you.
Since condo insurance only covers the interior of your unit, it’s much more affordable than regular homeowner’s insurance. Your HOA policy covers the exterior and the structure of your condo, which is usually more expensive to replace. Your HO6 policy also includes a liability portion, which you can increase if desired.
Condominium insurance covers everything inside your condo, including your walls, flooring, furniture, decorations, and personal belongings. Condo insurance also includes a liability portion and coverage of additional living expenses if a covered peril makes your home uninhabitable. Condo insurance does not cover the exterior of your home. That’s covered by your HOA master policy.
We want to make sure your asset is protected. Your condo insurance is there to cover any financial risk if something happens to the interior of your condo. You’d be surprised to learn how much it costs to replace flooring or furniture without an insurance policy in place. Contact us today to create an HO6 policy to protect your condominium.