What does condo insurance cover?

Condominium owners have most of the same insurance needs as any homeowner—their home is both a place to live and an investment, and it's full of their belongings.

Condos are different from other kinds of homes, though, because unlike a detached single-family home, each condo is a smaller part of a larger whole. That's why condo coverages are also a little different from standard home insurance. We look at what's the same and what's different for the typical condo insurance policy.

What condo insurance covers

Whereas a typical detached home policy is sometimes referred to as an HO-1, HO-2, or HO-3 policy, the most common condo insurance policy is often referred to as HO-6. This policy will usually cover:
 

• Damage to the inside of your unit: If certain perils—such as a fire, a storm, or vandalism—damage the interior of your condo, insurance will help pay for repairs up to your policy limits. Generally, a policy will apply to either named perils, in which case only damage from certain sources is covered; or open perils, in which case all perils are covered unless specifically exempted.
• Your personal property: If your belongings are damaged or stolen, condo insurance will help replace them up to the limits on the policy. There are usually item-specific sub-limits on this coverage for things like jewelry and electronics.
• Loss of use: If you have to pay to live somewhere else temporarily because your unit is uninhabitable, loss-of-use coverage can cover your expenses up to a limit.
• Personal liability: If you're held legally responsible for bodily injury or property damage, insurance can help pay the claims up to your policy limits.

RELATED ARTICLE: How does personal property insurance coverage work?

What condo insurance doesn't cover

Unlike detached homes, a condominium includes shared structures outside your unit like exterior walls, hallways, and common areas. These are owned jointly by all occupants, so your personal condo policy doesn't cover them. Instead, a "master policy" owned by the homeowners association (HOA) does. Learn more about your condo insurance vs. your HOA's master policy.

Condo insurance also typically won't cover flood or earthquake damage. Working with an insurance agent can help ensure your policy fits your needs—such as if you need earthquake insurance for your condo.

What optional coverages might be available?

• Additional personal belongings: As mentioned above, an HO-6 condo insurance policy will likely have sub-limits for certain high-value personal items. If you have a lot of jewelry, electronics, or other belongings, you can purchase additional coverage with higher limits on your policy. 
• Medical payments: If a visitor is injured in your home, this coverage could help cover their reasonable medical expenses. Unlike personal liability coverage, this coverage can pay out even if you're not held legally responsible for the injury.
• Loss assessment: If there is a covered loss to a common area or shared property of your condo that exceeds the coverage level in the master policy, your association may charge an "assessment" to each condo owner to cover the balance. Loss assessment coverage is an additional endorsement for your individual condo policy that can cover such assessments, up to a coverage limit.
  
  Keep in mind that loss assessment coverage doesn't apply to general upkeep and maintenance. If your HOA charges an assessment to resurface a communal pool or install a new roof, for example, that wouldn't be considered a loss assessment.