Insuring your home is one of the most important things a homeowner needs to do. And this applies to condo owners as well. Condo insurance, also known as HO-6 insurance, helps you protect your investment by insuring the interior structure of your condo and the fixtures and personal property you keep within it. Your homeowners insurance policy may also provide additional protection for other structures, liability, medical, and additional living expenses.
You may have several questions about what circumstances your condo insurance policy provides coverage for and how much your policy covers. At Excellence First Insurance our top priority is to answer these questions and help you insure your home as if it were our own! Our insurance agents make it easy to review, compare, and understand your condo insurance policy options and ensure you have the coverage you need.
Importance of Condo Insurance Coverage
The owner or association of your townhome or condominium carries an insurance policy that protects the exterior structure of the building and their property. However the association’s insurance policy does not provide coverage for your individual unit. It is important to have your own separate condo insurance policy to protect the interior structure of your unit and the fixtures and personal property kept inside the unit.
Is Condo Insurance Mandatory?
Condo insurance is not always mandatory, but there are certain circumstances in which you may be required to carry a condo insurance (HO-6) policy specifically. For example, if you are financing your condo your lender may require you to carry a condo insurance policy. Your licensed insurance agent at Excellence First Insurance can help you ensure your condo insurance policy meets necessary HO-6 requirements.
Types of Condo Insurance Coverage
Condo insurance policies are customized to your unique needs. Different policies include different types of coverage and coverage limits. While each condo insurance policy is unique, a standard condo insurance policy may include the six following types of primary coverage:
Building Property Protection
Building property protection provides coverage for property within your unit that is not typically considered personal property. If building property such as your cabinets or appliances are damaged as a result of a coverable incident, building property protection helps cover the costs of repairing the damage or replacing the property.
Personal Property Coverage
Personal property coverage helps cover the costs of repairing or replacing personal belongings you keep inside your condo or townhouse if they are damaged in a coverable incident. Personal belongings includes things like furniture, clothing, electronics, and more. You can insure your personal property based on the replacement cost or the actual cash value of the property.
If you or a family member accidentally injure someone else or damage their personal property while they are on your property, they may sue you. Liability protection provides coverage for the costs you are found legally responsible for. Such costs can include the cost of your defense, legal fees, and awards.
Guest Medical Protection
Guest Medical Protection provides coverage for reasonable medical expenses resulting from injuries sustained by someone else while they are on your property. This coverage may help pay for costs such as medical bills, emergency transportation, and diagnostic testing and exams. However, it does not pay for medical expenses for you, your family, or your pets
Additional Living Expenses (ALE) Coverage
Additional Living Expenses (ALE) coverage, also called Loss of Use coverage, provides protection from financial loss when you have to relocate as the result of a coverable claim. If damage to your condo is severe enough to make it uninhabitable and you have to temporarily relocate while the damage is repaired or your condo is rebuilt, this coverage will help cover your increased living expenses such as renting a hotel room or eating out at restaurants.
Additional Condo Insurance Coverage Options
There are also additional coverage options you can add to your condo insurance policy to expand your protection. Additional condo insurance coverage options include:
• Extended protection
• Loss assessment
• Water backup
• Building code coverage
Our licensed insurance agents carefully review the details of your condo insurance policy to ensure you understand the types of coverage your policy includes and the amount of each type of coverage you have. Contact Excellence First Insurance today to have one of our licensed agents help you find the condo insurance coverage you need within your budget!
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