All About Condo Insurance or HO6
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If you own a condominium, then perhaps you’ve already come to realize just how valuable your property is. Your homeowner’s association (HOA) policy might protect you from perils that may occur in common areas of the building – but it’s not a policy designed specifically for you and your property.
Of course, you don’t want to lose your precious home and investment to forces outside of your control. For this, you’ll need your own condo insurance, also called HO6 insurance.
What is Condo Insurance?
So, what is condo insurance, and what sets it apart from other home insurance policies?
Simply put, condominium insurance is a policy designed to protect the aspects of your condo that your homeowner association’s master policy won’t protect.
As a condo owner, you likely already have an HOA master policy. However, your master policy typically only protects you against liability and property damage in shared spaces of your condominium. It doesn’t cover damage to personal belongings.
Condo Insurance Coverage
Here’s an easy way to visualize your condo insurance coverage. If an earthquake hits your area, your HOA master policy will cover the damages sustained by your building’s structure, as well as any shared spaces like swimming pools, lounge areas, and gyms.
Structural damages include a falling wall inside your unit, as long as it’s part of the building’s original design. What the policy doesn’t include, however, is your TV, laptop, couch, or bed that was damaged by the said wall.
Condo insurance, also called HO6 insurance, will cover everything else that is not covered by the HOA. This kind of insurance policy is specifically made to protect your personal belongings, structural improvements, and investments from unforeseen events, such as fires, water flooding, break-ins, and more.
Here’s what you can expect from your condo insurance.
Property Protection
With condo insurance, you can be assured that your property is safeguarded against a wide range of perils. This policy generally extends to damages caused by fire, theft, water damage, and even natural disasters.
From structural elements to personal belongings, comprehensive condominium insurance coverage will include any structural element, furniture, and valuable property in your unit that isn’t covered by your HOA.
Liability Coverage
Accidents are unavoidable, but you shouldn’t have to bear the financial burden alone.
Liability coverage is often included in the best condo insurance policies, so you’ll be protected in case of accidents or injuries that occur within your condo unit. Liability coverage pays for legal expenses and medical bills, providing you with comprehensive financial security and ease of mind.
Loss of Use and Other Conditions
It’s not just lost property and liability expenses – a good HO6 policy should also protect you from the inconveniences of temporarily not having access to your home.
Loss of use due to certain conditions outside of your control will typically be included in these policies. Examples include discovered structural defects in your unit or earthquake damage that has to be repaired.
In case those things occur, you can rest easy knowing that your insurance will cover things like hotel accommodations until your unit gets repaired.
What Is Not Covered By Condo Insurance?
HO6 insurance can be pretty comprehensive, but what’s not covered by condo insurance?
The most common category not covered by typical condo insurance is shared spaces that already fall under your HOA’s master policy. Damages to common areas such as lobbies, parks, and pools will usually fall under this category.
More importantly, condo insurance also doesn’t cover damage due to neglect, such as termite damage, wear and tear, and other preventable circumstances.
Customized Policies
We understand that every condo owner’s needs are unique.
That’s why Magnum Insurance offers flexible policy options that allow you to customize your coverage. Whatever additional protection you require, we have the right solutions to fit your specific needs. Here are some possible riders to your policy.
- Identity theft coverage. Protect yourself against the legal and logistical cost of someone impersonating your identity.
- Loss assessment coverage. This type of addition can protect you from expenses incurred in cases where you will need to hire an expert to calculate damages.
- Water damage protection. Water damage due to unexpected situations is covered with this policy rider.
- Replacement costs. A standard policy will usually pay you back for current, depreciated costs of the items they covered. Improved replacement costs rider ensures that you receive enough replacement funds to buy completely new items.
- Vacant condo policy. This policy protects you from damages incurred for leaving your condominium empty for certain periods.
Condo Insurance Pricing
Before you get your own condo insurance, you may be wondering, how much is condo insurance in the first place?
The price of your monthly premiums will vary wildly, but the National Association of Insurance Commissioners estimates the average to be $511 annually.
This figure will usually depend on factors such as unit price, state, risk, lifestyle, and more. If you want the best coverage possible for your budget, then you need to get a good condo insurance quote from a reliable insurance agency, such as Magnum Insurance.
Protect Your Condominium with Comprehensive Insurance Coverage!
Never leave your precious investment vulnerable to unforeseen events.
At Magnum Insurance, we understand the unique risks and challenges faced by condo owners like you. Discover how our comprehensive condo insurance coverage can provide the protection and peace of mind you deserve.
Don’t wait until it’s too late—take the proactive step to safeguard your condo investment now. Request a personalized quote today!
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