Why do I need condominium insurance?
You own a condo and the association has insurance. So why do you need insurance, too? Condominium Associations are responsible for purchasing property insurance to cover the condominium building (outside shell), commonly owned property, and liability insurance for the association. The unit owners are responsible for covering everything inside their units. Condominium policies protect you from losses to your unit such as burglary or water damage. It will also have liability protection for bodily injury or property damage to others. That’s why you need condominium insurance designed specifically for condo or co-op owners.
ALC Risk Solutions writes condo-unit insurance policies, also called HO6 policies with many different insurance companies. HO6 or Condo Insurance policies are very similar to homeowner’s insurance policies for single-family homes, which are called, HO3 policies.
What does a condo insurance policy cover?
A condo policy covers the following:
Coverage A or Dwelling Coverage – The cost for rebuilding the inside structure of the unit.
Coverage B – Other structures not attached to the unit but owned by the condo unit owner, like a shed or garage. For many condo unit owners this section can be left at $0.
Coverage C – The unit owner’s personal property, items such as furniture, clothes and other possessions.
Coverage D or Loss of Use – The owner’s expenses incurred when they cannot occupy their unit due to an insured damage or peril.
Coverage E - The unit owner’s personal liability coverage. This coverage becomes very important, in the event that lawsuits are brought against the owner or their family both on and off their property, as it will protect the unit owner. There are limitations on this liability coverage and they vary for insurance company to insurance company.
Coverage F or Medical Payments - Pays the medical costs of accidents that occurred at the insured unit without a lawsuit being brought.
Another very important coverage mentioned in Florida House Bill 714 is Loss Assessment coverage. The Condo Reform bill requires at least $2,000. This covers the condo unit owner for condo association assessments due to covered insured perils.
Protect your family’s assets, speak with an agent like ALC Risk Solutions, call 786-644-RISK (7475) or email acohn@alcrisk.com today.Has your agent quoted your Condo Unit Owner’s insurance with all the available markets? Protect your family’s assets, speak with an agent like ALC Risk Solutions, call 786-644-RISK (7475) or email acohn@alcrisk.com today.
The above is meant as general information. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.