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Get Condominium Insurance With Miller Hanover Insurance

Get Condominium Insurance With Miller Hanover Insurance

If you own a condo unit, townhouse, or co-op, you need a condominium insurance policy. Condominium insurance covers losses due to property damage, theft, and liability costs if someone suffers an injury in your home.

At Miller Hanover Insurance, we are a full-service insurance company offering policies from reputable carriers. Our agents look forward to helping you find the best condominium insurance policy for your needs.

Below, we outline the different types of coverage you may need as a condo owner and the steps to ensure optimal coverage at the lowest possible rates.

What Is Condominium Insurance?

Condominium insurance (an HO-6 policy) is similar to homeowners’ insurance. This policy should protect your property, personal belongings, and everything else your condo association’s master policy doesn’t cover.

Condominium insurance is not mandatory under state law. However, your mortgage lender may require that you take out this policy to protect the unit as it is collateral for the mortgage. Your condominium association likely also requires that you take out an individual condominium policy with minimum coverage levels.

Understanding Condominium Insurance Coverage

As a condominium owner, you have two policies protecting your assets and reducing your risks: the condominium association master policy and your individual condominium insurance policy.

Condominium Association Insurance: What Does the Master Policy Cover?

In most condominiums, all unit owners contribute to the master insurance policy of their condo association. This policy applies to the condominium’s overall structure, including common areas like stairs, elevators, hallways, lobbies, and swimming pools.

The master policy may also provide some coverage for individual units:

  • Bare walls coverage only protects your unit’s exterior walls, flooring, roof, and ceilings.
  • Single-entity coverage protects your unit’s exterior and original fixtures, such as light fixtures, sinks, and cabinets.
  • All-inclusive coverage includes single-entity coverage and any improvements you made, for example, new fixtures and flooring.

A master policy typically covers liability claims and property damage due to a covered insured event. Read the articles of the condominium association policy to find out which type of coverage applies to your unit.

Condominium Insurance Coverage

Once you understand the coverage you get under the master policy, you can determine the coverage you need under an individual HO-6 policy. The sections below outline the different types of coverage you can get under a condominium insurance policy.

Personal Property Damage or Loss

Personal property coverage is the portion of a condo policy that pays when you need to replace damaged or stolen items. This insurance can cover everything you own, including appliances, books, electronics, kitchenware, jewelry, and clothing. Note that these policies only cover damage from “named perils,” such as fire, vandalism, and theft.  

Depending on the policy terms, your claim amount for personal property can be for the following:

  • Actual cash value: The current value of an item less depreciation
  • Replacement cost: The cost of replacing an item at the current market price

Replacement cost coverage is generally more expensive because you’ll pay less out of pocket to replace an item.  

Personal Liability

Personal liability coverage protects you against third-party claims for medical expenses, property loss, or other damages. This insurance will pay if you are liable for another’s injuries or property damage, not your own.

Here are some examples of events that your personal liability insurance may cover:

  • A dying tree standing in your garden falls on your neighbor’s roof
  • A guest enters your home, and your dog bites them
  • A delivery driver suffers a slip-and-fall injury on your front porch

Dwelling Coverage

Dwelling or building property coverage pays when you have structural damage due to an insured event. The dwelling coverage you need depends on the unit protection you get under the master policy.

For example, if the master policy includes all-inclusive coverage, you don’t need dwelling coverage under your condominium insurance policy. On the other hand, if the master policy only offers bare-wall coverage, you will need extensive dwelling coverage to protect all your fixtures, including the original fittings.

Loss Assessment

Loss assessment coverage may be necessary when the condo association has a significant claim that exceeds the master policy limits and decides to pass the difference on to the owners. For example, if the building has extensive hail damage, the loss assessment portion of your policy may help cover this expense.

Suppose the master policy requires a substantial deductible, and the condo association splits this upfront cost between all unit owners. In this case, each owner’s loss assessment coverage will pay. An individual unit owner may also be responsible for the entire deductible if they are liable for the damage.

Living Expenses (Loss of Use)

If you must temporarily move out of your unit because of a covered event, such as a burst pipe, the loss of use coverage will pay for your accommodation. Depending on your policy, this coverage may also pay for other expenses, such as laundry and food.

What Are Covered Insured Events?

Whether you can claim property damage, loss of use, or dwelling coverage depends on the cause of the damage. Most condo insurance policies cover the following:

  • Fire and smoke
  • Wind, hail, and lightning
  • Break-ins, theft, and vandalism
  • Water pipe bursts
  • Explosions

Scenarios that condo insurance policies don’t automatically cover include:

  • General deterioration, wear, and tear
  • Flooding due to heavy rainfall, sewer backups, and underground water
  • Intentional actions
  • Nuclear hazards
  • Damage from rodents, birds, and insects

You may be able to buy extra coverage in the form of add-ons or endorsements for protection that your standard policy doesn’t offer.

Find the Best Condominium Coverage With Miller Hanover Insurance

The factors affecting your condo’s insurance premium include your age, claims history, and your condo’s location and security features.

If you need insurance coverage for your condo, our friendly agents at Miller Hanover Insurance can help. Our user-friendly online system lets you make side-by-side quote comparisons to find the best deal on condominium insurance. You can also consult one of our agents to bundle products or take advantage of discounts.

Visit our website or call us today for a high-value condominium insurance policy.