Condo associations have their own insurance policy in place for the entire condo, which asks for a monthly contribution from its residents. However, this would still require you to get insurance for your unit in the condo as well. H06 is a perfect condo insurance policy that will effectively cover your unit, where your condo association policy may fail to. Condo association insurance covers external buildings and common areas like roof and lobby repairs but may not cover your unit. You should check your condo association insurance policy to see what it covers before deciding on your insurance coverage policy. In case of damage to your property, your insurance will reimburse you for the loss incurred and provide you with a temporary shelter. HO6 policy coverage may be expensive but is an essential requirement to living in a condo.
What Does the Insurance Cover?
You might be wondering what an H06 condo insurance covers. There are two types of personal property coverage, one where the insurer will give you the cash value of the items lost or you can upgrade to replacement cost coverage and re-design your unit with better products. The insurance policy is also liable to pay for your additional living expense of hotel accommodation if you need to move temporarily because of the damage to your property. Liability and medical payments can also fall under the insurance coverage, paying for you if you cause damage to someone’s property or if a visitor at your property is met with an accident. You may also need dwelling coverage for your unit fixtures and loss assessment, which applies to incidents and accidents when you may have been responsible for the damage affecting the entire condo.
Cost and Conditions Covered
You need to account for the finance part of the insurance policy. The average condo insurance can be approximately $488, as stated by a National Association of Insurance Commissioners report. The rate, however, can vary according to the location you live in and the amount of coverage you may require. Condo insurance policies may vary on coverage policies; some common scenarios are considered actual conditions for your insurance to replace the damage. Fires, wind, theft, vandalism, and burst pipes are some scenarios that your insurance may cover. However, you should be wary of some conditions like earthquakes, floods, wear and tear, damage from animals, intentional injuries to others, and damage from underground water because your insurance does not cover them. A separate insurance package will have to be purchased if you live in an at-risk region, prone to property damage.
Vacant Condo Insurance
If your condo unit has been vacant for more than 30 consecutive days, condo insurance may not cover the damages that the property may incur in your absence. An unoccupied property is considered to be at higher risk of damage by insurers because issues may not be addressed immediately. Thus, if you plan on staying away from your condo for more than a month, you will need vacant condo insurance, which might be an additional cost, but is still a better alternative than having no insurance at all. Mortgage lenders often require the homeowners to purchase an H06 insurance policy for their unit to protect their financial interest during your loan. While Condo associations may already have their insurance, and your contribution to it may be obligatory, having your insurance for your unit is essential, too.