Breaking Down What A Standard Condo Insurance Policy Covers

Owning a condo is different from owning a single-family home, and so are the insurance needs. While your condo association typically carries a master policy to insure the building and shared spaces, that coverage usually doesn’t extend to the interior of your unit or your personal belongings. That’s where condo insurance (HO-6 policy) comes in.
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Here’s a breakdown of what a standard condo insurance policy covers and why it’s essential for condo owners.

1. Coverage for the Interior of Your Unit (“Walls-In” Coverage)

• Protects everything inside your condo that the master policy doesn’t cover.
• Includes walls, floors, ceilings, cabinetry, built-in appliances, and fixtures.
• If a fire damages your kitchen or a pipe bursts in your bathroom, condo insurance helps pay for repairs.

2. Personal Property Coverage

• Protects your belongings, such as furniture, clothing, electronics, and appliances.
• Covers against perils like theft, fire, vandalism, and water damage (not floods unless added separately).
• Some policies also extend coverage to belongings outside the condo, such as items stolen from your car.

3. Liability Protection

• Provides coverage if you’re legally responsible for injuries or property damage.
• Example: A guest slips on a wet floor in your condo and sues for medical expenses.
• Also protects you if your pet causes damage or injury.

4. Loss of Use / Additional Living Expenses (ALE)

• Pays for temporary housing, meals, and other living expenses if your condo becomes uninhabitable after a covered loss.
• Example: If a fire forces you to move out for two months, ALE helps cover hotel or rental costs.

5. Loss Assessment Coverage

• Helps cover your share of costs if your condo association levies a special assessment after a covered event.
• Example: If a storm damages the building’s roof and the master policy doesn’t fully cover it, owners may be billed. Loss assessment coverage can help pay your portion.

6. Medical Payments to Others

• Covers minor medical expenses if someone is injured in your unit, regardless of fault.
• Usually applies to smaller claims, such as a guest who needs stitches after a fall.

What’s Not Covered?
Standard condo insurance policies do not cover:

• Flood damage (requires separate flood insurance).
• Earthquake damage (requires a separate rider or policy).
• Wear and tear or maintenance issues.
• Damage to common areas (covered by the condo association’s master policy).

Tips for Condo Owners

1. Review Your Association’s Master Policy – Understand what it covers (bare walls, single entity, or all-in).
2. Take Inventory – Document personal belongings to ensure adequate coverage.
3. Consider Add-Ons – Add riders for high-value items like jewelry or art.

Conclusion
A standard condo insurance policy (HO-6) is designed to protect the parts of your home and personal property that your condo association’s master policy does not cover. It also provides liability protection and financial support if you need to relocate temporarily after a covered loss.

The takeaway: Understanding what your condo insurance covers—and where it stops—helps ensure you’re fully protected. Review your policy regularly and coordinate with your association’s master policy to avoid gaps in coverage.

At Clark & Bell Insurance Agency, we aim to simplify the insurance process while delivering exceptional service and affordable options tailored to your needs. For more information or a free quote, call us at (239) 334-4141 or CLICK HERE.

Disclaimer: The information provided in this blog is intended for general knowledge only. Consult a licensed insurance professional for personalized advice suited to your specific insurance requirements.