If you are thinking about purchasing a condominium in Florida, you’ll need to keep in mind some important aspects of Condo Insurance. Also known as an HO6 policy, Condo Insurance is intended to extend your protection beyond the limits of the master insurance policy carried by your homeowner’s association (HOA). The potential for losses due to water leaks and house fires spreading to other units is much greater in shared-wall or multi-family dwellings than in detached homes. Condo Insurance is interior coverage from the “walls in” and protects you financially from loss, damage, theft and unforeseen expenses.
Standard coverage in a condo insurance policy includes:
- Personal property: This can include such items as furniture, electronics, household goods, clothing, etc.
- Personal and premises liability: This will protect you in the event someone is accidentally injured inside your unit.
- Damage to unit structure: Everything nailed down from the “walls in” is covered by your condo insurance: carpeting, ceilings, cabinets, countertops and built-in appliances.
- Additional living expenses: If your condo is damaged to the point that it’s uninhabitable, this helps relocate you and pay living expenses while repairs are made.
- Special insurance assessments: In the event your community’s master insurance policy falls short in a covered peril loss, the condominium corporation may pass on assessments to the unit owners. Loss Assessment coverage will protect you financially in such events.
Already Own a Condo?
Most likely, if you already own a condominium in Florida, you have condo insurance. Although homeowner’s insurance is not mandatory in this state, your bank or mortgage company will require “creditor-placed” or “force-placed” insurance as part of the terms of your loan agreement. If you obtained your home or condo insurance through your lender, it is possible that your coverage was not provided at a very competitive rate. You might consider meeting with a Pallant Insurance Agent to review the cost of your policy.
Own a Condo and Rent it Out?
As the condo owner you need to have a Landlord Insurance Policy, also known as an HO6-Rented to Others policy. Landlord insurance typically covers:
- Fixtures from the “wall-in” such as floors, finishings, cabinets and countertops
- Contents, such as furniture and appliances, that you own and provide for your tenant’s use
- Theft of your belongings from your condo or storage locker
- Premises liability in the event someone gets injured on your premises
Short-Term Rental Insurance (such as AIRBNB) and Vacant Condo Insurance are two other types of policies for those circumstances. Because every situation is unique, it would be a good idea to contact your Pallant Insurance Agent to discuss the particulars of your condo use. We will be happy to help you sort through and understand all the considerations before you decide which policy would best serve your needs.
If you have questions or need any assistance, please feel free to contact one of our expertly trained Pallant Insurance Agents.
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