Where can you get condo insurance?

Answer 1

There are two kinds of insurance that cover condominiums.

1. The association buys a master policy to insure all the real estate assets owned in common by all the owners. You pay this premium from your monthly assessments.

2. A unit owner buys an HO-6 policy, that insures what the owner owns, including personal property. You pay for this individually. You can purchase 'actual cash value' (depreciated value) or guaranteed replacement cost' (replace with new) coverage.

Consult your governing documents and your master policy to determine what you need to insure so that your HO-6 policy dovetails with the master policy: you don't want overlapping insurance, nor do you want any gaps in coverage.

Furthermore, understand that the coverage that you purchase, may be distinct from the coverage of the master policy, covers that which is "within the four walls" of the unit, whereas the association policy covers the structure itself (the "common areas"). Or not.

Best practices dictate that you work with a broker or agent who understands associations, so that you get exactly the coverage you need.