Condo Insurance FAQ

Q.What Does Condo Insurance Cover?

Condo insurance policies typically cover what the condo association’s master policy doesn’t cover. A condo association master policy can be of two types:

  • An “all-in” condo master policy: Also known as a “single-unit” master policy, this type of policy covers the fixtures in your condo such as the appliances, wiring, plumbing, and carpets, but does not cover personal property that you own.
  • A “bare walls-in” condo master policy: This policy does not cover anything contained within your walls. It may or may not cover your condo’s plumbing and electrical systems. Be sure to carefully review the association’s master policy to determine what your condo insurance policy needs to cover.

You will need to buy more of your own condominium insurance if your association has a “bare walls-in” condo master policy than if it has “all-in” condo master policy.

Your condo insurance policy will cover you for loss or damage to your personal possessions, and provide coverage for personal liability and medical payments. Additionally, it will often cover loss of use in the event that your condominium becomes badly damaged by a fire or storm and you need to live elsewhere during repairs. Insurance for a particular condo is known as an HO-6 policy. HO-6 policies typically provide you with coverage for a range of causes of loss. You may have to purchase additional coverage for specific items such as artwork, jewelry and other items of value.

Q.Is Condominium Insurance Tax Deductible?

Condo insurance as a rule, like homeowners insurance, cannot be deducted on your taxes. However, if you rent the condo out to another person, you may be able to deduct the cost of your condo or landlord insurance, at least as it applies to depreciation, wear and tear. Also, if you operate a business out of your condo, you can typically deduct a portion of your condominium insurance from your taxes.

Q.Does Condo Insurance Cover Theft?

Your condominium insurance will cover theft or burglary if your policy includes personal property coverage. Depending on the details of your policy, you may even be covered for items that are stolen from your car. However, you should be aware that certain items may be either excluded or have specified limits, and you may require additional riders or endorsements to get full coverage on such things as jewelry, art, collectibles and other valuable items.

To ensure that all of your items are covered against theft or damage, you may want to take a full inventory of your personal possessions and estimate their value. Many condo owners are surprised to find out how much they have that is worth protecting. Be sure to compare the amount of coverage you have with your inventory to determine whether you have enough insurance. By taking an inventory of your items you also can create a record of what you own, so that in the event of a loss you are well prepared to file a claim.

Q.Does Condo Insurance Cover Hurricane Damage?

If you have condo insurance, you will be covered for damage to your possessions and the interior of your condo from major storms such as hurricanes, tornadoes and windstorms. Damages to fixtures, plumbing or wiring may or may not be covered under the condo association’s master policy, as some condo policies cover fixtures while others only cover bare walls. If the master policy is a “bare walls” policy then you may opt to get a condo policy that covers these items. It is always important to understand the coverage your condo association carries so that you avoid coverage gaps.

Q.Does Condo Insurance Cover Special Assessments?

Basic condo insurance does not typically cover special assessments. However, in some policies, special assessment coverage is included for “named perils.” For example, if a fire damaged your condominium, including common areas, the unit owners in the association may receive a special assessment notice to cover some of the costs of the repairs. Depending on the specifics of your condo insurance policy, you may have some coverage that would help you cover your portion of the assessment.

You will have to separately purchase special assessment insurance, also known as “title insurance,” which covers special assessments not contained within your condo property documents.

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