Condominiums are a wonderful investment for many people who want to own their own home but don’t want the upkeep of a house.

If you do own a condo, it’s important that you have proper condominium insurance to protect it; however, condo insurance can be a tricky subject.

Make sure your condo is adequately insured by reviewing these points below, then discussing your property with an experienced condo insurance agent.

Is Condominium Insurance the Same As Homeowners Insurance?

Condominium or HO-6 insurance is basically the same as any other homeowners insurance policy and works in essentially the same way.

You pay a yearly premium to your condo insurance agency; if you have a covered loss, the policy pays you a benefit for the repair or replacement of your property according to your policy’s stipulations and limitations.

Typically, there is also liability insurance included in the policy just like a standard homeowners policy.

Where condo insurance purchased from a condo insurance agency differs from a standard homeowners policy is in what it does and does not cover.

A condominium is not a freestanding building that you own completely; instead, it is part of a larger structure that has common areas and certain other elements that are owned by a corporation and managed by a condominium association.

What Does and Doesn't Condo Insurance Cover?

Condominium insurance covers your personal belongings plus all of the fixtures, appliances, walls and floors on the inside of the dwelling.

For example, if you have a fire in your stove that is within your condo and your kitchen is affected, your policy would cover the interior damage, damaged appliances, and other similar items.

Your policy also provides you with personal liability coverage for anyone who enters your dwelling and gets hurt.

What the HO-6 condo insurance policy does not cover is the exterior of your condo or its structural components.

In other words, if that same kitchen fire were to spread through the walls into other units and also affect the roof, that additional damage to the structure is not covered by the HO-6 policy because the space your condo occupies is part of the larger structure owned by multiple owners as well as the corporate ownership of the structure.

HO-6 coverage also has exclusions similar to that of a standard homeowners policy such as flood and wind damage and certain other named perils.

What Is HOA Insurance?

HOA condo insurance is the policy that the Homeowner’s Association has to protect the physical structure of the building, the common areas in your condo community, and certain other things.

In the above example, HOA insurance would cover the damage that extends outside of a single unit and affects the entire building structure.

HOA insurance can also provide liability coverage for the members of the HOA and its directors as well as coverage for common areas of the building.

Getting the Right Condo Insurance Can Be Confusing

Although condominium insurance performs basically the same way as any homeowner’s policy, the difference lies in the fact that your unit is within a bigger building that is the responsibility of the HOA.

As such, it is critical to understand what your individual and the HOA insurance policies each include and exclude so your home and belongings can be properly protected.

A knowledgeable condo insurance agent can help you wade through the details of your condo ownership situation and craft a policy that gives you the insurance coverage you need for your own condominium!

Confused About Condo Insurance In College Station?

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