Condominiums and townhouses
have special insurance needs. They don't need as much insurance as
a house, but owners have more to insure than a renter. The insurance
needs for a condo owner include personal property and liability overage.
Special policies for condominium owners, known as form HO-6, will provide
the liability and personal property protection a condominium owner
As a condominium owner,
one needs to insure not only their personal possessions in the condo,
but also any built in units such as cabinets, fixtures, appliances
and shelves. In addition to covering the personal property, a condo
owner also needs liability coverage. The liability portion of the policy
would cover injures or damage to people or property that the condo
owner would be liable for.
Below is a checklist
of the top four questions to consider when choosing a condominium insurance
1. What are your ownership
and insurance responsibilities in the condo association's Master Deed
(the insurance requirements the association expects from you)?
Almost all associations
have a master policy insurance that covers you for the actual structure
and common elements such as a swimming pool or tennis court owned by
all unit owners. The association documents and the master policy spell
out very specifically where common areas end and where your unit starts.
In some cases, for example, your unit may start inside the wallboard.
In others, the wallboard may be considered part of your unit.
2. Does the policy
you are considering include broad water damage coverage for problems
such as sewer and drain back-ups?
3. Does your condo
association provide comprehensive or blanket coverage to protect you
against other condo owners who may not have adequate coverage?
4. Do you have expensive
personal items such as jewelry or furs that you may need additional
personal property coverage for?