Condo Insurance Coverages
Your condo association's policy typically covers the building's exterior and common areas but not your personal belongings, appliances, or interior features like floors and walls. Amica's condo insurance fills these gaps, providing tailored protection for your needs.
Standard condo insurance coverages
Understanding the scope of condo insurance coverage is necessary for condo owners who wish to protect their investments effectively. While certain aspects of coverage may be required by condo bylaws or your mortgage lender, others might be optional yet highly beneficial.
Dwelling coverage
In a condo, dwelling coverage protects built-in features, like flooring, countertops and upgrades, from risks like fire and vandalism.
Example: Your condo has a small kitchen fire that damages the stove, cabinets and countertops. Most likely, repairs for these areas will be covered by your condo policy.
Loss assessment coverage
Provides coverage for charges made to all unit owners in your complex by your condo association for damage to common areas from a covered loss.
Example: If a tornado damages the recreational facilities in your condo community, this coverage helps with the charges assessed by your homeowner’s association.
Personal property coverage
This covers your personal belongings if they’re destroyed or stolen by a covered risk named in your policy.
Example: If fire damage affects your belongings, personal property coverage can help pay for costs to clean or replace your items.
Loss of use
Offers coverage for temporary living expenses such as hotels or meals, if your condo is uninhabitable due to a covered loss.
Example: You’re unable to use your kitchen because of water damage. Loss of use will cover additional food expenses while your kitchen is being repaired.
Liability protection
Liability insurance helps protect condo owners from financial burdens that can arise from accidents or injuries occurring within their unit.
Example: If your guest sustains a serious injury while inside your condo and files a lawsuit against you for damages, liability coverage would help pay the damages (if you're found liable) and associated legal fees.
Medical payments
Helps with the medical expenses associated with minor injuries that occur within your unit, regardless of fault.
Example: Your guest accidentally falls in your bathroom and suffered a minor injury; medical payments coverage can help pay the doctor's fees.
Additional condo insurance coverages
Beyond the coverages provided by standard condo insurance, additional condo insurance coverages offer extra protection tailored to meet individual needs and circumstances.
Water backup coverage
This coverage helps repair your personal property if it’s damaged by water from backed-up drains or sump pump failures.
Scheduled personal property
An add-on for condo owners who own high-value items that standard policies may not fully protect. This type of coverage allows policyholders to list valuable belongings, such as jewelry, art collections or collectibles, separately to ensure they’re properly protected against loss or accidental damage.
Replacement coverage
With this coverage, your belongings are valued at their current market value rather than their depreciated worth. If your items are stolen or damaged in a covered loss, replacement coverage allows you to repair or replace them without worrying about the gap between what you paid and what they’re worth now. This is beneficial for items that lose value quickly, like electronics and furniture.
Electronics coverage
Optional coverage that specifically protects electronic devices, like laptops, smartphones and tablets, from losses not covered in your policy, such as accidental damage.
Identity theft
Identity theft insurance helps you recover from the financial and personal impacts of having your identity stolen. It covers costs like legal fees, lost wages and expenses related to restoring your identity.
What is covered by your condo association’s master policy?
Condo insurance vs. HOA insurance – what’s the difference? Your HOA insurance or condo association's master policy covers the building's structure and shared spaces, like walls, floors, ceilings and liability for incidents in common areas. However, it typically doesn't cover your personal property, specific upgrades within your condo or your personal liability, which is why having both a master policy and individual condo insurance is essential.
Condo association policies fall into two categories: "all-in," which covers each condo's original structure and fixtures, and "bare walls," which only includes ceilings and floors. The type of master policy affects the coverage you'll need for your personal insurance. For example, if it’s a "bare walls" policy, you'll need more dwelling coverage for items like cabinetry and appliances.
By combining both policies, you can achieve comprehensive coverage. The condo association's policy takes care of the building and common areas, while your condo insurance addresses personal property, interior upgrades, liability and living expenses in case of inhabitable conditions. Having both policies ensures that you’re not financially exposed to unexpected losses that could arise from various risks.
Understanding your condo insurance policy
Equipping yourself with a clear understanding of your condo insurance policy can lead to making informed decisions that cater to your specific needs, optimizing your condo insurance for maximum benefit.
Deductible
The deductible is what you pay out of pocket before your auto insurance covers a claim. A higher deductible lowers your premiums, while a lower deductible raises them but reduces upfront costs in case of a loss.
Limits
Selecting the right limits for your condo insurance ensures adequate protection. Coverage limits are the maximum your policy pays for a covered loss. Review your condo association's master policy and assess your assets to determine appropriate limits.
Declaration page
Also known as the dec page, this is a document that summarizes your condo policy coverages. It lists your name, address, policy period, coverage types, limits and deductible.
Special considerations
When managing condo insurance, condo owners should thoroughly review their association's bylaws and their individual condo insurance policy to avoid coverage gaps.
Related insurance coverages
There are related coverages that can help condo owners create a comprehensive insurance portfolio to protect you inside and outside of your home.
Customer service that earns loyalty
Empathy isn’t just a word – it’s woven into every interaction with our policyholders. Their stories are a testament to the trust and loyalty built over decades of compassionate service and support.
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