December 11, 2018

Condo Homeowners Insurance

Condo

A Condo policy is a very inexpensive (usually only a few hundred dollars a year) way to protect not only your contents, but also your condo unit.  Many people mistakenly believe they don't need a policy because the condo association covers the building under a Master Condo policy.  The Master policy only covers the "Common Elements" (as defined by your condo by-laws) of the building and does not provide any coverage for the portion of your condo unit owned by you (as defined by your condo by-laws), your contents, your loss of use, or your personal liability.  A properly written Condo (also referred to as an HO-6) policy can protect all of these things.


Our policies usually provide the following coverages:

  • Building - This protects the portion of your condo unit that according to your condo by-laws are owned by you.  Typically this is things like the flooring, wall coverings, lighting fixtures, plumbing fixtures, and any additions or upgrades made by you or the prior owner.

  • Contents - Your contents will be covered for their full replacement cost value up to your policy limit.  All policies limit (usually to just $1,000) coverage for certain items, like jewelry, watches, silverware, furs, guns, fine art and antiques.  If needed, these items can be scheduled separately for an additional premium. 

  • Loss of Use/Additional Living Expenses - This is one of the most important coverages to have, but one most companies don't adequately cover.  It protects you in the event of a covered loss that forces you to live somewhere else while your condo is repaired.  For example, if your building were destroyed by a fire, you may have to rent another place to live for an entire year while your condo is rebuilt.  You will unfortunately still have to make your mortgage payment on your condo, but will also now have to pay rent to live somewhere else.  This coverage would pay you for the cost of the rental property.  Most policies only include about $5,000 in coverage, which would only pay about two months of rent.  We typically recommend at least $30,000 in coverage.

  • Personal Liability - We quote all policies with $500,000 in Personal Liability coverage.  Higher limits are available via a Personal Umbrella policy.  Everyone needs to have Personal Liability coverage, but especially condo unit owners.  For example, most condo by-laws hold you responsible for any water damage you cause to the building and/or other units.  So if you have a pipe leak or if you accidentally leave the water running and it damages the units below, you will be liable for all the damage.  The same is true if you accidently start a fire that damages other units.
     
  • Personal Injury Liability - This is another coverage most companies do not include.  It covers you for things like invasion of privacy, false arrest, libel, and slander.  If you ever post comments or reviews online, you definitely need this coverage.

  • Loss Assessment - This provides coverage for your share of a loss assessment charged by your condo association to all condo unit owners.  The loss assessment must be due to a covered cause of loss under your policy. 

 

Our Condo Homeowners Insurance Companies Include the following:

ACE Private Risk Services
ACE Private Risk Services
AIG Private Client Group
AIG Private Client Group
Fireman's Fund Travelers
The Hartford The Hartford Products



Contact us today for more information about Homeowners Insurance or fill out our online quote form.

Click here for Frequently Asked Questions

3201 New Mexico Ave NW #300
Washington, DC  20016
202-966-0700
Info@howard-hoffman.com