Insurance policies for condominiums are a little different than homeowners insurance policies for single-family homes. They are almost a hybrid of typical home policies and apartment renters insurance. That is because condos are owned by the person taking out the insurance, but the unit usually shares a building with other condo owners.
Note that this covers condo policies for owners. If you rent a condo, you would take out renters insurance.
Condo insurance policies typically include coverage for:
Personal property includes anything inside the unit that is owned by the people taking out the policy. This might include appliances, electronics, clothes, jewelry, and furniture. A typical condo owner might possess about $20,000 worth of goods inside their condo, and some people might have more valuable items.
The interior walls and flooring are things that a condo owner has to replace. This might include wallpaper, paint, and carpet. The condo building association should have a group policy that covers the exterior of the building and common areas that all owners share.
Typical homeowners policies also cover liability. This protects the condo owner in case a visitor claims that the owner caused an injury or damage by their negligence or actions.
Other policy options might be included in a condominium policy. For example, there is a policy option that might be called relocation assistance or loss-of-use. This helps the owners find temporary lodging if they have to move out because of damages.
Is Condo Insurance Important?
It is just as important to insure a condo as it is to insure any other type of home. If you suffer from damages because of a storm or a burglary, you still need help to get things fixed. If you owe money on your condo, your mortgage company probably requires coverage.