Condo insurance HO6 – What is it and what you need to know

So you're in your condo and all of a sudden the roof breaks open and water comes gushing out now this is a two layered condo so you weren't quite sure what happened the question now is who's gonna cover this is this going to fall on your insurance the person above you.

Or the association well today we're going to explain condo insurance and we're going to go over those different situations also we're going to cover what companies you should go with and some discounts that you should lean towards now i actually took this article from a company called cover.

I will link them below where they offer quotes and multiple options for condo home auto all of that stuff but i really like the article that they wrote so i will put an affiliate link down there so you guys can review that as well so in this situation we're talking about condo insurance and the question.

Being is what's the right fit for me well first off i can tell you right up front if you're already charged or paying more than six hundred dollars a year in some few states the 700 marks is kind of the top for condo insurance you're already overpaid now.

It does depend on what type of coverages you have but let's dive into that a little bit further so what is condo insurance it's essentially what we call a walls in policy because there's the association which you may think is covering you it's not that's what they call a master policy.

And that's just the association protecting common areas so it's liability risk if somebody slips and falls outside something happens the roof caves in they're covering the roof they're covering the building itself in general and what happens is you pay an association fee so you're technically.

Paying for that insurance even though you don't do anything with it it's up to the condo association to do all of the lay work there so what your portion is is you're paying a piece of that insurance and the maintenance of all of the buildings in your association you're sharing the cost essentially if.

Somebody gets hurt and there's a big lawsuit if a building burns down your association fee is going to go up whether it was your fault or not that's just part of what you bought when you bought into a condo with an association fee well they don't cover the inside of the building because.

That's up to you you own the portion of that property and you're responsible to ensure that part that's your personal property and your personal liability that you have to protect as well if there's a fire they're not going to cover your tv your couch your shoes all of your.

Personal belongings they're not going to replace the walls the flooring the countertops all of those items are going to be in your plate and that's where insurance kicks in and you have that walls in policy so in this situation we used an example of the roof caved in because.

Somebody else's water burst yes that is going to fall under the person who is liable but in most cases you're still going to probably start the filing a claim with your insurance get it taken care of your insurance will in turn go after the other person now in home insurance and condo.

Insurance are almost identical in the aspect as if you file a claim it doesn't matter you're a higher risk and that is going to affect the rate not major you're probably going to see about a 10 to 15 percent hike in the rate and if you're paying the four to five hundred dollar range you're going to see an extra 60 to 70 a.

Year for the next three years which i know sucks but you just have to decide whether it was worth having that thirty thousand dollar claim covered for an extra sixty dollars hundred eighty 180 for three years it's up to you to decide if that was a good.

Deal now this cover article went in to explain what the area affects the location and how that affects the pricing that's correct the area that you live in the response time of the fire station the age of your building all of those little tiny factors just like a home policy.

Is going to affect a condo as well if the roof is 30 years old and the association is neglecting it then your insurance isn't necessarily going to kick in some of that bill because it's not their fault that your association wasn't taking care of the building you're most likely covered because.

You're gonna have to go after the association in this situation but it's possible that could be happening if they're not taking care of a tree that has termites and it hits the roof and it goes through your building then you technically have insurance for it but there's a good chance that those.

Claims could get denied based on the neglect portion the question being is is it your neglect or is it the association's neglect now that's a whole other video we actually do have a claims video up here that you can watch through so if you want to get through kind of how to.

Handle claims and whatnot that'll actually go through that portion from there the most important thing that people ask me is what company do i go with and how do i get discounts on this policy as a really good example i've gotten my parents down below 200 a year i even upped their coverages to.

Give them a better deal just based on the company now that's specific to our state we had a company in michigan that you go through what i would recommend is in that link next to that article they actually shop you multiple companies and this is one of the best pieces.

There's a little bit of a warning i'm going to give here in just a moment but i love the fact that you can go to one place type in and text or call or whatever you prefer and get in contact with somebody that's going to give you a good rate if you don't like that rate you can tell them what your thoughts are and then.

They can keep shopping for you the part i would disclose to you is know what you're doing and that's hard to say that you do or don't know this channel is full of data and full of coverage i'm actually going to link my home insurance because i'm a lot of these coverages.

Not necessarily the coverage a or the b because that's kind of part of the association but you're going to see those in those videos of what personal property covers what your liability is going to cover and those different endorsements that you can add all of those are very similar.

If not the same as a condo policy so i would recommend that you start at coverage c and then move your way through those endorsements to see what options you have as far as what coverages you should go through here's where you have to decide what your income level.

To what insurance level you want to have the biggest part that i see is not so much the water stuff and the fires and the theft although those are huge important pieces those are the most likely problems to have but the most impactful is the liability portion.

If you have somebody that gets hurt in your condo your unit and they sue you for some reason you're medical exhausted most people don't have more than five or ten thousand medical so if someone gets hurt and it's a three hundred thousand dollar claim they have to go after your liability.

Portion to claim that and get it back now this is usually your friend that this happens they might have cut their finger or something happened and they tripped and the hand went in a blender i don't know the situation but whatever that situation is you want them to be taken care of your insurance is going to have to foot.

That bill or at least fight and explain why that they're not going to cover that situation this is where these do-it-yourself apps do tend to lack a little bit they tend to default to the 300 000 i personally don't like that level it fits a handful of people and that's why.

They do it but it's not a whole lot more to bump you up to 500 000 so talk to the person if that's an option if you have a good income to protect if you have a nice home that has a lot of assets you own property land anything that could be taken from you in.

The event of a lawsuit you want to make sure that your insurance has enough or more than you to cover those situations now yes it is important like i said to have the fire and the theft and the right deductibles and all that if the money is the biggest piece to you here's what.

I would do i would lean towards those higher limits if that fits your lifestyle of where you're at i would also say if you're trying to cut down costs don't lower those don't remove them i would change the deductible i would rather that you have a ten thousand dollar.

Deductible lower the cost a hundred to a hundred and fifty dollars a year then lower the liability down to two hundred thousand or a hundred thousand and lose out on potentially several hundred thousand dollars where you could have protected it by just having a large deductible.

So you're risking ten thousand dollars versus having a three to five to eight hundred thousand dollar claim that you're protected or not protected at the end of the process it's up to you guys because i personally think condo insurance is pretty inexpensive when you've done insurance for 10 plus.

Years like i have you see home insurances at 1200 to 1800 a year and then you get the condo insurance at 350 to 400 a year it's pretty inexpensive to do because you're gonna mostly cover your belongings is the part that people most think about and they're trying to get the full.

Replacement cost they want to have water back up in case a pipe burst that'll cover the interior and things like that those are all popular and very important pieces also like i said in that video of the home portion i would say unless you're at that 500 plus per year you may be in a good situation you can.

Just talk to your agent as far as finding the right fit if you have too much coverage or not enough coverage if you are above that or just starting to look i would recommend going below and following through that process because they will give you some idea of what options are out there for you.

Hopefully this was helpful guys i am mark with think insurance i'll see you in the next one

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