What Is Condo Insurance and Why Do I Need It?


Condo insurance is a special type of insurance that aids in the protection against losses and various types of repair expenses for condominiums. In most instances, the coverage allows protection to the policy holder for fire damage, damage from water, vandalism, theft, and various other situations.

Condo insurance is also known as “HO-6 insurance”. In short, it provides protections against situations and events that the master policy of the unit will not cover.

Why Do I Need Condo Insurance?

When one resides in a condominium, it is common to depend on the administration of the building or the homeowner’s association to provide insurance on the actual structure and the areas where individuals gather.

Unfortunately, if personal belongings are damaged, lost, or stolen, these entities/policies will not cover those situations or events. In order to have complete coverage, it is advised that you obtain condo insurance. 

What Does Condo Insurance Do?

Condo insurance covers that which other policies put into place on the structure will not cover. Examples include repairing the residential unit following a disaster, the replacement of belongings that are stolen, and even if a pet dog bites a guest.

To determine what is covered, you must examine the policy closely. For example, a dog bite may be covered but if the dog is of a certain breed, it may not be covered.

If you have a mortgage on your condo, the lender will require condo insurance in order to protect their financial-based interests while you are paying on your loan. Once completed, the homeowner’s association may continue to require the coverage. 

What Is Commonly Covered in Condo Insurance?

The following outlines that which is commonly covered by most condo insurance policies:

  • Personal Property
  • Loss of Use
  • Additional Living Expenses
  • Liability
  • Medical Payments
  • The Dwelling
  • Building Property
  • Bare Wall Coverage
  • Loss Assessment
  • Fire and Smoke
  • Wind and Hail
  • Theft
  • Explosions
  • Vandalism
  • Lightning
  • A Burst in a Pipe

What Are Common Endorsements?

There are additional coverages that condo insurance may cover. These are referred to as “common endorsements” and must be added to the initial policy. The most popular of these include the following:

  • Personal Property Replacement
  • Extended Valuable Coverage
  • Water Backup Coverage
  • Vacant Home Coverage
  • Identity Theft Coverage

How Much is Condo Insurance?

The average annual rate for condo insurance is about $500 a year; however, this varies by state. You may save money on your policy by obtaining quotes from more than one company, bundling your coverage with another type of insurance coverage, and raising the deductible of the policy.

We here at Modica Associates can assist you in finding the best coverage and the best deal on your policy. We will work with you to determine the best coverage for your needs and provide numerous quotes from our partners.

If you are in the market for condo insurance and want to obtain it in the most convenient manner possible, we encourage you to contact us today by calling: 718-855-1836

Recent Posts