by Guest » Tue Jun 12, 2007 03:40 am
Many individuals think that since the association owners have purchased insurance on the association they don't need insurance to protect their home. While it is true that the association owner will cover if your condo roof flies off, it will, however, not cover damage to any item inside your condominium. So, you need to get a separate coverage for your own safety.
What does HO-6 insurance cover?
A typical condominium insurance covers damage to your condominium, your belongings from perils like lightning, explosion, hail, windstorm, fire, civil disturbance, vandalism, theft, damage from falling objects, aircrafts or other vehicles and smoke.
How much condo insurance do you need?
To be able to determine how much condo insurance you need you must make a checklist of things you have to insure. You can begin by reading the master policy for the association. By reading the master policy you can find out what it covers and how much your condominium will be protected in case of any damage.
You can make a list of the things you would be responsible for like the flooring of your condo or the wall coverings, the plumbing fixtures, cabinets, any built-in appliances, lighting fixtures and any improvements made to your condo. Take some time out to add everything up to get an idea of home much condominium insurance you need.
Making a list of the personal property that you own would be a good idea to assess properly the amount of insurance you need to buy. Ask your agent for a content replacement option and how much it would cost you. Set your personal liability at a high limit to get a good amount of coverage. You could do the same for 'Loss Assessment' to cover you for big losses.
You can make a list of the things you would be responsible for like the flooring of your condo or the wall coverings, the plumbing fixtures, cabinets, any built-in appliances, lighting fixtures and any improvements made to your condo. Take some time out to add everything up to get an idea of home much condominium insurance you need.
Making a list of the personal property that you own would be a good idea to assess properly the amount of insurance you need to buy. Ask your agent for a content replacement option and how much it would cost you. Set your personal liability at a high limit to get a good amount of coverage. You could do the same for 'Loss Assessment' to cover you for big losses.
What you need to know before buying condominium insurance?
Master policy: Go through your master policy for the condominium to find out how much you are covered under that policy. Based on that you could assess what you need to cover to protect your condominium and your possessions from any damage due to a peril.
Deductibles: There is usually an association deductible in condominium insurance. So in case of a disaster be prepared to pay the deductible that will be divided amongst the unit owners.
Coverage required: Determine what you need to cover in your condominium and based on that draw up an assessment of the amount you need to invest in insuring your property.
Cash value or replacement cost: Find out which one you are opting for. A cash value will give you only the current value of an item minus the depreciation costs while a replacement cost would offer the total cost of replacing the item.
Interior structure and contents: Your association will not cover your personal property and the contents inside your condominium. You need to purchase coverage for the structure of your home and the contents inside your condo separately.
Flood and wind coverage: Make sure you buy flood if you live in a flood prone zone. Wind coverage is generally included in a typical policy.
Deductibles: There is usually an association deductible in condominium insurance. So in case of a disaster be prepared to pay the deductible that will be divided amongst the unit owners.
Coverage required: Determine what you need to cover in your condominium and based on that draw up an assessment of the amount you need to invest in insuring your property.
Cash value or replacement cost: Find out which one you are opting for. A cash value will give you only the current value of an item minus the depreciation costs while a replacement cost would offer the total cost of replacing the item.
Interior structure and contents: Your association will not cover your personal property and the contents inside your condominium. You need to purchase coverage for the structure of your home and the contents inside your condo separately.
Flood and wind coverage: Make sure you buy flood if you live in a flood prone zone. Wind coverage is generally included in a typical policy.
Related reading:
- Home owners insurance for condominium and single families
- Do you need more insurance than the master policy for a condo?
- Why do you need condo insurance?
I have a question about ho-6 insurance. I need to purchase an ho 6 insurance policy which will, among other things, cover replacement cost for internal real property (drywall, wall coverings, carpet, window treatments, etc.). What's the rule of thumb on how much coverage to get for internal real property? The purchase price of my condo was $115k.
Posted: Sun Aug 01, 2010 09:55 am Post Subject:
I am looking for a . . . HO-6 policy that covers sewer and drain backup damage in my Condo.
This is a standard exclusion in all HO policies (not just HO-6) from all carriers. It is in the same category as "tidal waves", "water" (other than sudden bursting of pipes, or contingent to another covered loss), and "flood", but even a NFIP flood policy is not going to cover sewer backup.
The Commercial Property and Liability Policy owned by the Condo Association is not going to cover sewer backup either, in the same manner as an HO policy.
Although once covered, mold (your choice of color) has also become a standard exclusion in both homeowner's and commercial property policies as the result of frequent claims in the past (mostly in the 1990s).
Central air conditioning/heating units are only covered to the extent they are damaged as the result of some other covered loss (such as fire or collapse) external to the unit. They are not covered for mechanical breakdown (wear and tear) or inherent defect (covered by a manufacturer's warranty) -- for example, if an electrical component of the A/C causes a fire, the damage external to the A/C would be covered, but the internal damage to the A/C most likely would not.
As a condo owner, your liability for property damage includes all of your personal property and the hard assets of the condo to the interior walls. The structure itself, is covered by the Condo Association's policy. So when attempting to determine how much coverage you require, you'll need at least as much as it would required to completely rebuild the interior of the unit -- walls, fixtures (plumbing, electrical, etc), appliances, floor and window coverings -- and to replace your personal property -- clothing, furniture, linens and towels, china and silverware, guns, jewelry, fine art, books and valuable papers, electronics, and other contents (some of which, based on type or value, may need to be covered with an "inland marine floater" of one type or another).
The services of a local agent are invaluable when it comes to understanding and determining your coverage needs, and the proper coverage "forms" necessary to properly protect you and your "stuff".
Posted: Sun Aug 01, 2010 10:16 am Post Subject:
Is it mandatory to have this insurance on a Florida Condo. If it is not can you plese direct me to written documentation saying that it is not mandatory.
Insurance is rarely "mandatory" according to state laws. However, a mortgage lender or a Condo Association's CC&Rs may have their own requirements that force you to obtain certain minimum coverages as a "condition precedent" to financing or occupancy. This is not unlawful.
If those things are true, then state insurance laws permit you to obtain coverage from any agent or company of your choosing. You cannot be required to use the lender's own insurance company or the Condo Association's agent or insurer.
Posted: Thu Aug 12, 2010 08:37 pm Post Subject: HO-6 Condo Insurance
Does HO-6 Condo insurance cover personal contents along with appliances , plumbing, walls on inside?
Posted: Fri Aug 13, 2010 12:31 am Post Subject:
Yes, that's why you buy an HO6. Liability and PERSONAL PROPERTY coverage.
Posted: Fri Aug 27, 2010 03:09 pm Post Subject: ho6
I'm trying to get the HO6 just for one month, due a requirement from a Private Loan.
Posted: Sat Aug 28, 2010 01:24 pm Post Subject:
You cannot buy a ONE MONTH homeowner's policy. Minimum term is one year. You could obtain a policy for a year, and then cancel the coverage after a month or two, but you will pay a cancellation charge for doing so.
Posted: Sat Oct 16, 2010 10:45 am Post Subject: Leak from second floor
The upstairs condo unit had a leak that cause my ceiling to collapse. Is that covered under a HO6? Or should that be covered by the condo assocation policy?
Posted: Sun Oct 17, 2010 02:28 am Post Subject:
It is covered under your HO6, and also covered under your upstairs neighbor's HO6. If liability was proved to be that of the HO association instead of your neighbor, then the HOA's liability coverage would apply to the claim. You can turn it in to your insurance company and let them worry about it, and sue your neighbor and/or HOA for your deductible.
Posted: Tue Oct 19, 2010 03:30 pm Post Subject: HO-6
In VA we are purchasing a new condo townhome (stackable) and we are uncertain of what is adequate and what is inadequate coverage. If the dwelling is covered by the Master Policy, why do we need additional of $100K. What is adequate personal property of a fully furnished 2600 sf 3bd/2.5ba home with fam room, dining room and living room? How much insurance is adequate for Loss Assessement? Do we need water back-up ins as we are on the 3rd and 4th floors of the 4 story stackable townhome?
Posted: Fri Oct 29, 2010 10:19 pm Post Subject: financing companies
can a finance company require the homeowner to purchase building coverage on top of the hoa building insurance policy in place.
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