Condo Insurance
They say your home is your castle. That's true in Washington whether your home is a house or a condo. The investment in your condo is one of the largest you will ever make, so it makes sense to insure your castle properly. Washington state condo owners insurance is similar to homeowner insurance, but just as your condo differs from a house, so too does condominium unit owners insurance differ from home insurance.
Condominium Association insurance isn't enough
Your condo association has a master insurance policy that covers damage to building structures and amenities; master policies also provide liability insurance protection for injuries that may happen in common areas. However, condo association insurance coverages stops where the walls of your condominium begin. That means damage to drywall and floor covering, cabinets and plumbing and lighting fixtures are not insured unless you purchase condo insurance.
Insurance coverage for your possessions
And the association policy policy provides no protection for your personal property like clothing, dishes and furnishings. And even though a standard condo unit owners policy does provide insurance coverage for loss to your possessions, there are limitations that depend on the type of loss (theft vs. flood, for instance) as well as on the type of property (computer records vs. computers, jewelry, art or antiques, e.g.). In most cases, standard condo policies can be amended, or endorsed, to provide the right coverage for your individual needs.
Contact us to learn more about your condo insurance needs or get a quote
Anatomy of a condo owners insurance policy
A standard condo policy is written on a coverage form known as an HO-6 and consists of five parts:
Coverage A provides nominal coverage for property attached to the unit - like flooring and cabinetry. The amount of this coverage can be increased if necessary and probably should be reviewed if you have made any improvements to your unit.
Coverage C is the policy part that insures your personal property. This coverage can be on an actual cash value (ACV or depreciated) basis or could be provided on a replacement cost basis. And as mentioned above, there are differences in the perils insured against as well as limits to reimbursed amounts by property type.
Coverage D is usually called 'loss of use'. If you condo is damaged by a covered peril, and is rendered unlivable for a period of time, this coverage will pick up reasonable expenses for you to maintain your standard of living while your condo is being repaired.
Coverage E is the liability coverage portion of the policy. This coverage part protects you if someone injuries themselves while visiting your condo. It also include liability protection for property damage on and away from your residence. Liability coverage protects your future earnings and current assets so you might think of it as a component of your asset preservation strategy. Typical coverage amounts for Coverage E are $100,000 or $300,000.
Coverage F is referred to as 'medical payments' coverage. This is a type of 'no-fault' coverage and reimburses guests for medical expenses if they are injured while visiting you at your condo. Typical medical payments coverage starts at $1,000 but can be increased for a small additional insurance premium.
Other insurance protection you may need
There are a few significant exclusions or limitations in a standard condo owners insurance policy that you should be aware of. We list a few for you here and suggest we talk about them when working up some comparison quotes for you:
Flood is not covered in a standard condo owners policy but can be provided through an separate and affordable flood insurance policy. You may still need this coverage even if you are on a higher floor tp be protected properly.
Business pursuits coverage is provided but it is very limited. Endorsements can be added to your condo insurance policy and affordable stand-alone insurance policies, designed specially for home business, can also be a good option in some cases.
Loss assessment coverage is for assessments distributed to all condo owners in your complex by your condo assoication. These assessments are usually to recoup the insurance deductible that has to be paid by your association if there is an insurance claim. $1,000 is a standard coverage amount by higher coverage can be purchased. Whether or not you will need to do that will depend on the deductible that is part of your association's master insurance policy.
Do you have questions about Condo Insurance?
Contact an insurance specialist at Carli Insurance Agency today to answer any questions about Condo Insurance or for a free review and insurance quote for Condo Insurance.