As a condo owner, you may not own the land or building your home lies on, but you still require good insurance coverage for your unit.
Understanding insurance needs in a condo may not be as straightforward as it seems. The difference between a Homeowners Association Policy and Condo Insurance can be unclear.
The Condo Insurance HOA has a master insurance policy. However, it doesn’t protect everything inside the unit. Thus, it becomes vital to add a personal condo policy that keeps you covered completely.
What Does a Condo Homeowners Association Insurance Policy Cover?
It is also known as a condo association insurance policy or an HOA master policy. It protects both the complex as well as the residents against property damage and liability claims.
The Condo HOA Insurance also takes into account the damage caused by natural disasters such as hurricanes, to the exterior of the property. Moreover, it covers medical expenses and the legal bills that are associated with the common areas.
The common areas such as elevators, hallways, lobby, etc are taken care of by the elected members of the condo board. These are safeguarded by the master policy of Condo HOA insurance.
One must note that the Condo HOA is not the insurance for the entire unit. It majorly covers two things. The exterior of the complex and the common areas of the condo.
As the entryway begins, the HOA coverage ends. This is why these kinds of policies are called ‘walls-out’ or ‘studs-out’ policies. The walls, floors, cabinetry, etc are usually left out of the HOA cover. Moreover, it also doesn’t protect your condo against theft and fire damage.
HOA Insurance excludes most of the parts of the condo unit. Hence, it becomes pertinent to purchase Personal Condo Insurance Coverage.
What Does Personal Condo Insurance Cover?
A personal condo insurance policy protects your entire unit from different forms of damage. It covers liability, loss of use as well as loss assessment coverage.
It is also known as HO-6 insurance and is designed to cover what the condo association’s master policy won’t.
A personal condo cover offers financial well-being by protecting against the following:
- accidental water damage
- fire damage
- liability expenses for injuries
- theft
- the destruction caused by a windstorm
Along with these, the personal condo insurance also has additional living expenses coverage. It has two aspects- Loss of Use and Loss Assessment Coverage.
In case you are forced to move out of your unit due to a covered peril, the loss of use will cover your expenses on a temporary basis. On the other hand, loss assessment coverage provides that your insurer will pay for the unexpected damage to your condo.
Which Insurance Coverage is Ideal For You?
While personal condominium insurance covers the insides of the unit, the master insurance policy of the HOA is also extensive. It may come with different coverages. To cover the structures, extra assets, fixtures, and features in your home, you may invest in some additional coverage.
For instance, if you already have HOA walls-in coverage which covers the floor and appliances, the personal condo insurance you would require is less.
However, you need to ensure that you are also protected against floods, fire, vandalism, theft, etc.
Another point to consider is that the HOA Master Insurance Policy covers only the original value of appliances and not the upgrades that you have done to your complex.
On the other hand, by purchasing personal condo insurance, you would be sufficiently covered for most of the forms of damage in your condo building. All you need to do is to incorporate the improvements into your plan. Also, you should recognize the actual cash value of your belongings.
Condo Insurance Qualifications
Cathy Sink is a reputable insurance agency based in Florida that offers different types of coverages. When it comes to condo insurance, Cathy Sink Agency makes sure you have coverage that meets your needs adequately. We offer custom condo insurance in Florida that suits your requirements.
We represent one of the largest and most reputable insurance companies in the sunshine state. Our specialists make sure to offer better service and quicker claims resolution. At Cathy Sink Agency, we can tailor-make a condo insurance policy with different coverage options that are ideal for you.
If you’re looking for affordable and custom condo insurance in Florida, get in touch with our insurance agents today!