Question: What Should I Insure My Condo For?

What does condo HOA insurance cover?

An HOA master policy protects the complex and its residents against property and liability claims.

It covers damage to the exterior property caused by natural disasters, such as hurricanes or windstorms, and it covers medical expenses and legal bills associated with liability claims in the common areas..

Why do condo owners pay property taxes?

Property taxes are the principal source of revenue for most local government functions such as police and fire protection, schools, roads, parks, playgrounds, etc. The property tax is shared by all levels of government and by several types of governments at the local level.

What is not covered by condo insurance?

A standard condo policy covers many of the same perils as your standard homeowners insurance policy, including fire, bad weather, and theft and vandalism; also like homeowners insurance, condo insurance doesn’t offer coverage for flooding or earthquakes – for that, you need to purchase separate flood or earthquake …

What is condo insurance called?

Condo Insurance. Condo (HO6) insurance, or condominium coverage, is a type of insurance policy that protects you, your stuff, and your unit (everything from the outermost walls, inward).

Who pays for water damage in a condo?

According to the National Association of Insurance Commissioners (NAIC), condo owners are responsible for insuring their own unit. That means if a water leak causes damage to an individual condo, it’s typically the responsibility of the condo owner, not the Homeowners Association (HOA).

Is a condo a good investment?

Yes, condos generally appreciate in value. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. But, if you’re trying to decide between a condo or a house, keep in mind that a single-family home is usually going to grow in value faster than a condo will.

Who pays the condo master policy deductible?

An HO-6 insurer will pay a master policy deductible under Coverage A only if the association’s legal documents explicitly make the individual unit owner responsible for it. It won’t pay the deductible just because your client is getting billed for it.

How does homeowners insurance work for a condo?

Your condo insurance policy will cover you for loss or damage to your personal possessions, and provide coverage for personal liability and medical payments. … Insurance for a particular condo is known as an HO-6 policy. HO-6 policies typically provide you with coverage for a range of causes of loss.

Do I need homeowners insurance for a condo?

Typically, you’ll only need to purchase insurance for your own personal condo unit, and the association’s board will take care of getting the master policy for the building and shared spaces. (Keep in mind that your association dues pay for the insurance as well as other routine costs, such as maintenance.)

Is condo insurance more expensive than a house?

Condo Insurance Cost: Rates and Options Condo and townhouse insurance rates are typically much lower than rates for homeowners insurance for single family dwellings. This is because the condo association master policy usually covers damage to the building itself, including outdoor and common areas.

Is condo insurance expensive?

The average cost of condo insurance is $488, according to the NAIC.

Why buying a condo is a bad idea?

Owning a condo harbors more financial obligation than single family homes and gives you more uncertainty when it comes to estimating unexpected expenses that you might incur. The best rule is to always overestimate your expenses when buying a condo for investment.

What costs are associated with buying a condo?

Recurring Costs:Monthly condominium fees or common expenses (or monthly occupancy fees if you move into your unit before it is registered)Property taxes.Unit and contents insurance.Mortgage payments.Amenity fees, such as storage, pool and extra parking, if not included in the common expenses.More items…•

What should my condo insurance cover?

Condo insurance covers what your HOA won’t, like repairing the inside of your unit after disasters, replacing damaged or stolen belongings and paying liability costs if guests are injured there.

Who has the best condo insurance?

Seek Condo Insurance Companies With the Best Customer Service ReputationsInsurerOverall scoreInteraction scoreChubb33Liberty Mutual32Encompass33Safeco2324 more rows•Sep 17, 2020