As a condo owner, you may be wondering whether you need to purchase insurance for your unit. While your condominium association’s master policy will cover the building itself, it usually does not provide coverage for your personal belongings or liability coverage. That’s where condo insurance comes in – it can help protect you financially if something happens to your unit or if someone gets injured while on your property.
To help you better understand condo insurance, we’ve answered the 10 most commonly asked questions about it:
1. What is condo insurance?
Condo insurance, also known as HO6 insurance, is a type of property insurance that helps protect you financially if something happens to your condominium unit or if someone gets injured while on your property.
2. Do I need condo insurance?
While your condominium association’s master policy will cover the building itself, it usually does not provide coverage for your personal belongings or liability.
3. What does condo insurance cover?
Condo insurance can help cover the cost of repairs or replacement for your personal belongings. It can also provide liability coverage in the event that someone is injured while on your property.
4. How much does condo insurance cost?
The cost of condo insurance will vary depending on a number of factors, including the value of your unit and the amount of coverage you need. As with most things that require a quote, getting at least three quotes is a good way to know you’re getting a fair price.
5. How can I get the best rate on condo insurance?
There are a few things you can do to get the best rate on condo insurance, including shopping around for quotes, raising your deductible, and bundling your condo insurance with other types of insurance policies.
6. What if my condominium association has an insurance policy – do I still need to purchase one?
Yes! Even if your condominium association has an insurance policy, it is important for you to purchase your own condo insurance policy. This is because the coverage provided by your condominium association’s policy may not be enough to protect you financially in the event of a loss. It is also critically important you closely follow any insurance related requirements or rules set forth by your Association’s governing documents.
7. Will my condo insurance cover damage caused by my neighbor?
If your neighbor’s actions cause damage to your unit, your condo insurance policy may help cover the cost of repairs or replacement in line with the terms and conditions of your policy.
8. Does my condominium association’s master policy cover me if I get sued?
The liability coverage included in your condominium association’s master policy may help protect you financially if you are sued, but it is important to check with your association to see what is covered. Usually, the coverage applies to the common areas of the building, but not necessarily to the inside of your unit.
9. How can I find out what coverage my condominium association has?
You can typically find out what coverage your condominium association has by reading the declarations page of the master policy or by contacting your association directly.
10. Can I get a discount on my condo insurance if I have security features in my unit?
Yes, you may be able to get a discount on your condo insurance if you have certain security features in your unit, such as a burglar alarm or deadbolt locks. List these details when requesting a quote from an insurer, and you can see if they result in a lower price.
With more than two decades of experience managing buildings around Chicagoland, Hales Property Management has the know-how to help your building run smoothly. Request a proposal for association management today!