A Guide for Understanding Condo Insurance

Purchasing condo insurance can be complex, so it’s imperative to work closely with your broker or agent to obtain the best price and policy.

Why Are Condos Different?

Due to the use of shared space and amenities, there are special considerations to keep in mind when obtaining insurance. Most condos include special fees to cover routine maintenance and repairs, as well as specialized insurance for the entire complex or condo association.

Different Dwellings

Insurance is important for anyone residing in a condo, townhome, co-operative or other shared organization, whether you live in it year-round or use it as a vacation home.

Coverage Choices

Unit-owner policies are one of the most popular forms of individual insurance used by condo owners or occupants. This insurance picks up where the master policy leaves off by providing insurance for modifications or improvements made to the unit or for other uncompensated damages. Additional coverage may be required for personal property and even liability depending upon your individual circumstances. Ask your agent or broker about special situations, including small home business, increased personal property limits for valuables or collectibles, and enhanced loss assessment coverage. Your agent or broker will be able to provide specific insurance that complements the existing master policy to make sure you have the best policy. Loss of use is another popular form of coverage that every condo owner is likely to need. If you’re unable to use your unit due to a fire, weather-related damage or another problem, the loss of use coverage provides the protection needed to maintain a roof over your head until repairs are made.

Common Exclusions and Add-on Considerations

Every policy is different, but a few of the more common exclusions found in many policies include flood damage, earthquake- or mudslide-related expenses, pest- or pet-related problems, and business-related activities. Ask your agent about specialized coverage needs.