What Is Condo Insurance?

Condo insurance covers many of the same things as homeowners insurance with the notable stipulation that only your living space inside your unit is protected in the policy.

Here’s what else is generally covered.

• • Personal Property: This part of the policy covers your clothing, furniture, electronics, and other possessions and valuables. If you have expensive artwork or jewellery, be sure to have them appraised. You may need to purchase additional coverage to be adequately reimbursed for these items.
  • Loss of Use: Loss of use provides funds to cover alternative housing while repairs are made to your unit due to a covered peril.
  • Personal Liability: The personal liability portion of your condo insurance policy covers injury to others while in your unit. If your dog bites a guest or your child hurts another child, this part of the policy will cover you in case you are sued.
  • Medical Payments: This coverage takes care of expenses that are the result of injuries to non-resident persons while in your unit.
  • Dwelling Coverage or Building Property Coverage: You may not need this coverage if your HOA carries all-in or all-inclusive coverage, which will cover all items built into your unit including cabinets, appliances, and light fixtures as well as any improvements you make to these things.
    If your HOA doesn’t have all-inclusive coverage but something called single entity coverage, bear in mind this is almost the same as all-inclusive but doesn’t include any improvements you make to your unit. In this case, you may want to get your own dwelling coverage as well.
  • Loss Assessment: Loss assessment coverage will help you when your HOA exceeds the limits of its policy. For instance, if there was significant damage to the exterior of your condo because of a storm. In these cases, all occupants are usually asked to chip in to cover the difference. Loss assessment insurance will often cover some of all of your contributions. However, if the damage was caused by a peril NOT covered by your policy (like a flood), then you will have to pay out-of-pocket.
    Loss assessment also comes in handy if something happens in your unit that damages more than just your unit, like fire damage. If your HOA’s policy has a hefty deductible (which many do), then you could be on the hook for that amount since the damage is a result of something that happened in your unit. However, if you have loss assessment insurance, you could be spared the expense.
    Just keep in mind that loss assessment coverage is not always included in your condo insurance and even when it is included, the coverage can be quite low—around $1,000. Adding more coverage may be a good option, particularly if your HOA policy has a steep deductible.