Massachusetts condominium owners, being property owners, are generally responsible for insuring their condos. Thankfully, condo insurance makes it easy for condominium owners to get the insurance protections they need.
Condo insurance is a form of personal property insurance that’s uniquely designed for condominium owners. Most policies’ protections are similar to those found in homeowners and renters policies, but there are some differences.
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:
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.
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:
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.
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:
HO-6 is used to identify condominium policies.
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.
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.
When calculating the premiums for condo policies, insurance companies take into account many factors. Some items they may consider include the:
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.