What Protections Do Condominium Insurance Policies Offer?
As is the case with other types of personal insurance, the exact protections offered in condominium insurance policies can vary. Nonetheless, policies generally provide at least three types of coverage:
- Structural Coverage, which can vary significantly (see below)
- Personal Property Coverage, which may provide protection for a condo owner’s belongings
- Personal Liability Coverage, which may provide protection against certain types of liability lawsuits a condo owner could face
In addition to these three main coverages, condominium policies may also provide loss of use coverage, identity theft protection or a variety of other coverages.
What Structural Protections Do Condominium Insurance Policies Provide?
As mentioned, the structural protections that condominium insurance policies offer vary a lot. This is because condominium association master policies, which are usually purchased by condominium associations, provide different levels of protection for the structures inside condo units. In some cases:
- An association’s master policy may only cover a unit’s walls, and the condo owner’s policy will need to cover everything inside the unit (sometimes including the electrical and plumbing systems)
- An association’s master policy may cover a unit’s walls and standard features, and the condo owner’s policy will need to cover any upgraded features
- An association’s master policy may cover a unit’s walls and all features, and the condo owner’s policy won’t need to provide structural coverage
It’s impossible to know the amount of structural coverage that a condominium owner should look for in a policy without first reviewing their association's master policy.
What Does the HO-6 on Many Condominium Insurance Policies Stand For?
Most insurance policies that are used to insure personal residences can be identified using a standardized system of abbreviations. These abbreviations are “HO-” followed by a number:
- Homeowners policies for single-family homes are usually HO-2 or HO-3
- Renters policies for non-owned residences are usually HO-4
- Mobile home policies are usually HO-7
- Older home policies are usually HO-8
HO-6 is used to identify condominium policies.
What Massachusetts Residents Need a Condo Policy?
Most Massachusetts residents who have a condominium ought to have a condo policy. Condo owners are often required to carry insurance by their condo association's bylaws and the terms of any loan they have on their unit. They’re also dangerously unprotected without an insurance policy.
Are Flood and Earthquake Coverage Included in Condo Policies?
Like homeowners and renters policies, condo policies usually don’t offer flood or earthquake coverage. Condo owners who would like either of these protections typically must purchase a peril-specific flood or earthquake policy.
Flood policies may be available through the National Flood Insurance Program and on the private marketplace. Earthquake policies are often only available on the private marketplace.
What Factors Influence Condo Policies’ Rates?
When calculating the premiums for condo policies, insurance companies take into account many factors. Some items they may consider include the:
- Location of the condominium
- Size of the condominium
- Features in a condominium
- Past claims history of the policyholder
- Coverages and limits selected
How Can Massachusetts Condo Owners Get a Condo Insurance Policy?
When looking for a condo insurance policy, Massachusetts condo owners should talk with a licensed independent insurance agent. An independent agent is able to make sure that condo owners end up with a policy that meets their association’s and loan’s requirements, fills in the structural coverage gaps left by their association’s master insurance policy, and meets their other needs.
