Condo Insurance Q&A
Finding a new place to live is always pretty difficult. If you are familiar with apartments but not ready to commit to owning a home, there may be another option. A condominium, or condo, can be a great new space to live in. But you may be asking, what is the difference between an apartment and condo? Sure, they are both units inside of a building but there are a few key differences.
What is a condominium?
Condominiums are private residences inside of a residential building. Condos are often owned and managed by a landlord who can rent the unit to a tenant in a more personable exchange. The landlord may be a single person or a couple that own the unit, and thy have full say as to who can be approved to rent their unit. You may be looking to own a condo and would buy it from an owner. In this case, it can be compared to buying a house. When owning a condo, you can make updates to the unit or approve your own tenant if you decide to rent your unit out. Regardless of your decision to allow rental exposure to your condo unit, it’s critical that your insurance Agent is aware of how the property is being used. It absolutely matters who is occupying the home matches what is on the policy documents.
What is an apartment?
Apartments, on the other hand, is usually owned and maintained by a property management company. These companies can be regional or national corporations that work to provide housing to many different parts of the country. While the tenant can choose to rent a unit, they do not have a chance to own the unit, as they would a condo. They also are not able to make changes to any part of the unit, inside or out. That is maintained by the management company.
What is a condo’s master policy?
Many residence buildings have what is called Condominium Association Insurance. This is the official name, but it is also referred to as a Condo Master Policy. It is the policy that usually insures the building and common areas. It includes liability and property damage coverage.
What is an HO-6 Policy?
This is a specific “homeowners” policy for condominium owners. An HO-6 covers the unit from the walls in. It also covers the contents or the things inside the unit – appliances, fixtures, and belongings – as well as personal liability and more. More information about condo unit ownership and how to properly insure it can be found here.
Do condo complexes have a homeowners association and won’t that “cover me?”
Yes and NO. A condominium unit will be a part of a homeowners association and they should have their own Master Policy in place as described above. But the master policy does not cover YOUR unit. Like an HOA found within a neighborhood, a COA collects dues, enforces rules for residents, and keeps the properties consistent. More information about condominium associations can be found here.
What about renter’s insurance?
As a condo owner, you do not need renter’s insurance but depending on your unit’s rental exposure, you should consider an excess liability or umbrella policy. A renters insurance policy is for anyone who is renting a property—an apartment or home. With renter’s insurance, you are not responsible for the building but it can cover your liability if something happens to the building and you are found liable. Renter’s insurance will also cover your personal property and liability coverage.
It may be tricky to separate the two, but hopefully we made everything a lot easier to understand. Now that we give you the details, are you ready to request your quote to protect your Condo Unit? Get in touch with us by calling 850.244.2111 or email us service@harrisinsurance.com.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
