If you just bought one or are looking into a condo you may be wondering which insurance you need to protect your home. Here is a comparison:
What is Homeowner’s Insurance?
Homeowner’s insurance has a few different types based on the home you live in. If you own your house, you will have HO-1, HO-2, HO-3, or HO-8, depending on the level of coverage and age of your home. These are limited coverage, coverage for all 16 perils, and comprehensive coverage for all perils.
There is a separate policy called HO-4 for renters. It covers the tenant’s belongings and their unit. Coverage is for theft, damage, and injury liability.
What Does Home Insurance Cover?
Home insurance covers the contents of your home from theft and damage, protects you from liability within your home and property, and provides additional living protection to help you stay in a hotel while your home is repaired from any damage.
What is Condo Insurance?
There is a specific type of homeowner’s insurance if you own a condo or co-op, and it’s called HO-6. It protects you from all 16 perils, and the coverage applies to your belongings and the structural parts of the building you own.
The Master Policy
With a condo, the building management has what is called the master policy, while yours is an individual policy. The master policy protects the building structure, covering the common areas and shared spaces for liability and physical damage.
Some master policies cover the individual rooms as they were originally built, meaning you insure the renovations and alterations made. Other association policies cover only the walls and floors, so you are responsible for the fixtures, appliances, and all the rest. You should be able to find information about what your association’s policy covers in its by-laws or lease.
The Individual Policy
Your condo insurance covers personal possessions and any structures not covered by the master policy. You also get coverage for theft, damage from a named event in your policy, liability, and additional living expenses in the event your home is uninhabitable while under repair.
Your policy can also cover loss assessment for if the association’s policy does not cover all the damage to common areas or if a lawsuit is brought against the association. Personal property and valuable articles coverage will protect your possessions. Liability coverage kicks in if accidental damage is caused to your neighboring units or if someone becomes injured in your condo. Comprehensive personal liability coverage offers protection against lawsuits for damages from all named events in your policy.
For all of your property and casualty questions, contact the Redwood Agency Group.