Many condo owners ask why they need a condo policy for their unit when there is a Condo Association Master Policy. The master policy generally covers the building structure and its surrounding property. However, the master policy does not provide individual coverage for units and it’s recommended that a condo policy, known as a HO6, be purchased.
There are three main points of coverage provided with a HO6 policy: dwelling, personal property and personal liability.
Dwelling Coverage covers the interior unit for perils such as fire, theft and water damage. The amount of dwelling coverage depends on the square footage and any upgrades done to the unit such as flooring, granite counter tops, etc. Generally it runs around $50 - $100 per square foot.
Personal Property or Contents provides coverage for your personal items such as clothes, furniture, televisions. The amount of coverage one should carry varies depending on the individual and their possessions. An assessment should be done of your personal property to determine the level of coverage.
Personal Liability is financial protection for actions that might harm another person. If someone is injured in your home, the policy provides coverage for injuries and medical expenses. Without a condo policy you would be personally responsible for any expenses suffered by the injured party.
Even if your condo association has a master policy, it does not protect your personal property or provide personal liability. It is a huge financial risk not having condo insurance.
Please contact our personal consultants at Park & Associates at (561) 994-0880 to discuss these matters in further detail.