Condo insurance is coverage for condominium owners who want to protect their personal belongings and cover the parts of their unit not covered by the condo association’s master insurance policy. Known as an HO-6 policy, condo insurance is much like homeowners insurance in that it provides coverage for the internal structure of your condo and your possessions, and it also provides a layer of liability protection.
Condo Insurance FAQs
For your convenience, we have listed some of the most frequently asked questions we receive about condo insurance, as well as our answers.
Am I covered by my condo association’s master policy?
Condo owners are often mistaken when it comes to their association’s master policy. Although the fees you pay help cover the cost of your association’s coverage, it typically only provides protection for common areas of your building and the exteriors walls of your unit. Everything on the inside – from the floor coverings and interior walls to the cabinets and fixtures – is probably your own responsibility to protect.
Besides the inside of my unit, what else would I stand to lose without condo insurance?
Everything in your condo is at risk of loss without condo insurance. Your personal possessions would likely cost tens of thousands of dollars to replace if you lost them all in a fire or other covered event. Not only that, but you could stand to lose much of your current assets and future income if you are found liable for a third-party’s injuries or personal losses.
Wisconsin HO-6 Condo Insurance Coverage
Here in Wisconsin, condo insurance is known as HO-6 coverage. It is specifically designed to protect you in ways your condo association does not. If you financed your condo, your lender likely requires this coverage as part of terms on your loan. If not, it is still one of the most important ways you can protect the investment you have made in your home.
Condo insurance is a package policy that typically includes certain types of coverage. Examples include:
Personal Belongings
Personal belongings insurance is coverage for everything you own and keep inside your condo. You can choose to insure your items for their actual cash value or their replacement value depending on your needs and budget. The latter ensures you can replace your belongings with brand new versions, whereas the actual cash value takes into consideration the depreciated value of your possessions. Keep in mind that you may need to purchase additional, specified coverage if you have any high-value items that exceed the standard coverage limits on your policy.
Dwelling
This is coverage designed to reimburse you for damages to the interior walls and structure of your condo. It typically protects you against a wide range of potential perils, including high winds, lightning, fire, smoke, explosion, theft, and more.
Temporary Housing and Living Expenses
When you are displaced from your condo due to a covered event, your temporary housing and living expense coverage can help cover the cost of your hotel or rent until you can return home. In some cases, it may also provide compensation for restaurant meals and other living expenses during this time.
Personal Liability
Personal liability insurance is coverage for your fault in another person’s injury or loss. It can help pay for your legal defense fees and any court awards against you. Though every insurer is different, personal liability insurance on your condo may start at $100,000 with additional coverage available up to $500,000. If you still want to prevent losses above that, consider purchasing an umbrella insurance plan as an extra layer of protection.
Medical Payments
When someone is injured inside your condo, the medical payments insurance on your policy can help cover medical expenses even if the injury was caused by no fault of your own. This type of coverage may help pay for reasonable medical expenses, such as x-rays and physician visits.
Loss Assessments
When your condo association is responsible for liabilities or property repairs above and beyond the coverage on the master association policy, the costs may be handed down to unit owners in the form of assessments. Loss assessment coverage helps pay for the unexpected costs shared with your association.
