Just like the owners of single-family homes, condo owners need insurance to protect against various events. The insurance plans for condo owners are HO-6 policies.
While they are similar to other types of homeowners’ insurance, there are some differences. Coverage can also change depending on the policy and the owner’s needs. This post will cover the basics of HO-6 insurance policies.
Insurance Plans for Condo Owners
The first thing to understand is that the building and common areas will usually have coverage from a master policy. The condo association holds this policy and pays premiums using money from the dues or fees paid by condo owners.
It is important to understand what the master policy of the building covers before buying insurance for your unit. The master policy coverage and terms of the condo association can affect the type of coverage you need.
That said, most HO-6 policies have four basic components: coverage for building property, personal property, liability, and loss of use.
Building Property Coverage
This coverage protects the condo unit. It will cover things that are permanent or semi-permanent parts of the condo. The policy could cover damage to the walls, appliances, plumbing fixtures, floors, or cabinets. If damage occurs, the policy can help cover costs for repairs or replacement.
With this coverage, you are protecting your personal items. It could be anything you own that is not part of the condo unit. For example, the policy could cover furniture, electronics, jewelry, clothes, or art. It covers anything of value you would take with you if you moved.
Like a homeowner, a guest can hold you liable if they suffer an injury in your condo. Personal liability is protection from lawsuits that may result from an injury. The coverage can also provide financial protection if you cause damage to another person’s property. For example, a leak in your condo might cause water damage to a neighbor’s property.
Loss of Use
Loss of use coverage can pay for living expenses if you can’t live in your condo for a time. You might need accommodations if you have a covered claim requiring extensive repairs. When this occurs, loss of use coverage can provide financial support to pay the additional living expenses.
It is important to note that condo insurance is complex. Different owners may need different coverage depending on the situation. You should consult an insurance agent to help you find the right coverage.
Are you looking for a condo in Arlington, VA? Contact Arlington Condo by clicking here. We are local experts in the condo market. Our team would be happy to help you find a condo or loft in Arlington.
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