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Have a peace of mind knowing condo insurance will help protect your possessions and the inside of your home. We’ve ranked and reviewed various companies based on annual premiums, customer satisfaction, financial strength, and overall quality.
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If you live in a condo, acquiring condo insurance is a wise idea. Although similar to homeowners insurance, condo insurance is specifically designed for condos, and it offers protection for your possession and the damages inside your unit.
Also referred to as the HO-6 policy, this insurance protects the interior of your unit, including your personal property. It is a great addition to the HOA which only covers the exterior of your unit.
Condo insurance is worth considering for anyone looking to protect their home and not be financially burdened when the unexpected can happen. An unforeseen event could be extremely expensive to pay out of pocket or sometimes worse, lose your entire investment in the condo.
This insurance policy is not required by law, as with other insurance policies like car insurance. Nevertheless, most mortgage lenders may require you to have this insurance when making payments.
This helps to protect their financial interest during the loan term. Also, the HOA may require you to acquire condo insurance even if you own nothing in the unit.
Unlike a homeowner association that covers any damage done on the building exterior, condo insurance protects against any damage inside your apartment. It covers everything inside your unit including your personal property, appliances, cost of repair, and liability, in case of an accident inside your unit.
Generally, a standard condo insurance policy provides coverage for five areas:
Usually, the standard condo insurance can cover damages from various hazards like theft, fire, vandalism, wind and hail, lightning, explosions, and burst pipes. However, it is not responsible for perils like floods. This means that you will be responsible for water damage caused by flooding unless you get flood insurance.
Other things that condo insurance does not cover:
Basically, the condo insurance cost will depend on the type of coverage you choose. Also, this varies from one insurer to another and is based on factors like age of the building, type of construction, your deductible, credit history, and the state.
Generally, you can expect to pay about $250, going to $1000. A 2020 study revealed that Americans pay $625 per year on average in a policy that includes $60,000 for personal property coverage and $300,000 for liability coverage.
It can be daunting to select the best condo insurance, especially if this is your first time. Here are some tips to help you.
Before you settle for a specific insurer, ensure that you shop around first. Research the coverage that they offer to see if it meets your unique needs and requirements. Besides, comparing different companies will give insights to an insurer regarding the best prices in the market.
For this, use trusted resources and read customer reviews online to see what other condo owners think about the prospect insurer. You can also ask for referrals from other condo owners in your area.
By and large, the amount of coverage you need will depend on the condo’s square footage and the finishes and fixtures in rooms like the bathroom and kitchen. When figuring out how much coverage you need, keep in mind coverage for your Personal Property, Loss of Use, and Personal Liability.
You also need to evaluate the value of your personal property. For instance, you may need more comprehensive condo insurance if you own a lot of valuable stuff like jewelry than when you don’t have a lot of valuable items.
Furthermore, it would be best to consider whether you would need add-ons to offer better coverage for your condominium. Some of the additional policies that you may want to consider include:
Some insurance companies offer policy discounts when you meet certain terms. For instance, you can get lower policy premiums if you have a fire alarm or security system in your condo, are a senior citizen, or belong to an HOA. Therefore, shop around for an insurer with the best policy discounts to save on your condo insurance.