Condo insurance protects condo owners from damage to their personal property and liability risks. It differs from regular homeowners insurance because it focuses on covering areas inside the unit and the condo owner’s personal belongings, rather than the building’s structure or shared common areas.
Here’s what condo insurance typically covers:
Personal Property Protection
Covers damage or loss to personal belongings such as furniture, clothing, electronics, and appliances due to risks like fire, theft, vandalism, or water damage.
Personal Liability
As a condo owner you need protection from legal claims or lawsuits. Personal liability coverage protects condo owners from lawsuits.
Condo Unit Improvements (Alterations)
Upgrades to your condo unit, like custom cabinetry or flooring they aren’t usually covered by the condo association’s master policy. Condo Insurance will cover the costs of restoring these custom alterations.
Loss of Use
Provides coverage if your condo becomes uninhabitable due to a covered peril (like a fire), and you need to live elsewhere temporarily. It can help pay for living expenses during the repair period.
Medical Payments
Medical Payments coverage pays for medical costs regardless of fault.
What Condo Insurance Does Not Cover:
HOA’s responsibility
Damages to common areas or the building’s structure, such as the roof or foundation, should be covered by the condo association’s insurance, not the individual owner’s policy.
Building structure
The condo association’s master policy typically covers damage to the exterior of the building, roof, and shared areas.
Floods or earthquakes
Standard policies usually exclude floods and earthquakes.
In short, condo insurance fills the gaps in coverage left by the condo association’s master policy and protects your personal property and liability.
At Legacy Insurance Agency we have been writing policies for Condo Unit owners since 2005. You can find out more information about insurance in Texas by visiting the Texas Department of Insurance website.