Buying a condo is a significant investment, especially in a market as competitive as St. Louis. That means you should protect your investment with insurance. However, you need a clear understanding of the types of condo insurance and their coverage.
This post will teach you about the types of condo insurance and what they cover.
Individual condo insurance, or an HO-6 policy, is similar to homeowners insurance. It carries some of the same protections as standard homeowner insurance. However, it also excludes some protections. The reason is that the condo association’s master policy covers some things that would be in a standard homeowner’s policy.
For example, the structure and roof have insurance under the condo association’s master policy. It would also cover liability in common areas.
Condo insurance covers what the HOA master policy can’t cover. The condo insurance coverage typically includes the following:
It’s also important to note the exclusions in condo insurance policies. The exclusions in standard condo insurance are:
Although, it’s also worth noting that condo owners can purchase coverage for these exclusions in addition to the standard policy.
If your condo insurance covers everything inside your condo, the condo association policy is responsible for outside the walls. It covers the common areas and amenities such as parking lots, elevators, gyms, lobbies, etc.
The other inclusions of this type of policy are:
As you can see, the two types of condo insurance fit together. The condo association covers the building and grounds, and condo owners cover their units. Always remember to discuss your needs with a licensed insurance broker before purchasing.
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