Condo Policies And Renters Insurance

It's no secret that you need insurance when you own a home, after all, if there's a fire or someone breaks in you want your belongings to be protected and you want the actual structure to be replaced, or in the worst case scenario, your mortgage to be paid off so you can start fresh or build new.

What you may not realize is that condominium owners and people who rent houses or apartments need insurance as well.

Generally speaking, when you own a condo, the homeowners' association (HOA) is responsible for any exterior damage or losses, but you are responsible for the contents of your home, any fixtures, and the airspace down to either the thickness of the paint, or midway through any party walls (walls that are shared between units). Similarly, as a renter, the apartment owner's insurance will cover rebuilding the unit if there's a fire, but you have to protect your belongings. This is where condo and renters insurance come in.

Typically, your renters insurance policy will provide coverage in the amounts you select for items and situations which include:

Damage to your apartment (or house if you're renting a house) caused by a covered event (fire, etc.)

Personal liability, in case someone is hurt inside your home, as well as away from it.

Personal property (your furniture, and anything else you own, including clothing, books, home appliances, and electronics.)

The types of losses covered by renters insurance usually include:

Fire, and resulting smoke damage

Weather-induced collapse of the building

Water issues, including leaks and overflows

Damage from frozen pipes, or air conditioning.

Theft

Similarly, a condo policy, known in the industry as an HO6 policy, will typically cover the following:

Replacement value of your home and any specified permanent attachments, up to the value determined by you, your agent, and a property appraisal.

Physical injuries to anyone hurt on your property (but if they're hurt in common areas of the complex, like sidewalks or tennis courts, the HOA's insurance covers it.)

Liability for the above-mentioned injuries and property damage

Your personal property (furniture, electronics, clothing, etc.)

Damage from common hazards like glass breakage, frozen pluming, vandalism, and fire.

As well a basic condo policy will include coverage for damage to your walls, floors, ceilings and any paint, wallpaper or other coverings attached to them, as well as any permanently attached fixtures (chandeliers, shelving units) or improvements (re-modeled kitchens, for example). Your HOA dues include your contribution to the insurance on the exterior walls and common areas of the complex.

Whether you own a condo or rent an apartment, the last thing you want to experience is to come home to flashing lights and fire hoses, and then have to worry about having a place to live or money to replace your things. Renters insurance and HO6 policies give you the protection you need from such things.