Living Prepared

24
Jun

Personal Condo Insurance Coverage vs. Condo Association Master Policy

It was only in the recent past that some lenders began requiring borrowers to obtain personal condominium insurance coverage. It usually comes in the form of what's known as HO6 insurance that covers the interior of a condo. You'll want to insure your personal property inside of your condo too. HO6 is called "bare walls-in" or "studs-in" coverage, and it's considerably less expensive than other homeowners insurance policies since the exterior of the premises is likely covered by the condo association's master policy.

HO6 Coverage

The HO6 "bare walls-in" not only covers your personal liability for accidents involving third persons inside of your unit, but it also covers:

  • Damage to personal property like furniture, appliances, clothing or electronic items
  • Damage to interior walls and flooring
  • Custom upgrades you've made in your unit

Surprisingly, it might also fill in any gaps in the condo association's master policy along with any losses incurred by virtue of master policy deductibles.

Sufficiency of HO6 Coverage

You'll want to be sure that your "bare walls-in" coverage is sufficient. Most policies only provide for actual cash value of your losses. You're better covered with replacement value. You'll want to discuss replacement value coverage with your Prepared Insurance agent. Be sure to bring any improvements or upgrades in the unit and any particularly valuable personal property you have inside your condo to his or her attention too. You might need special coverage for those.

Your Condo Association Master Coverage

If "bare walls-in" coverage covers everything inside of your condo, your condo association’s master policy generally provides "walls-out" coverage for anything beyond your front door. "Walls-out" coverage basically insures the basic building that condo you live in, including exterior walls, roofs, common hallways, stairways and elevators along with the land that you share with the other owners. It also covers liability for injuries sustained by others in or on those common areas, and sometimes, depending on the terms and conditions of the master policy, it might even cover your personal property and fixtures.

Before you get your HO-6 condo insurance coverage, contact us, and we'll go over your condo association master policy so we can determine just what you're going to need for the interior of your unit. Because of the duality of ownership, condominium ownership can get confusing. Your agent at Prepared Insurance is pleased to give you any information you might need or get a quote today.