A “condo” is basically an apartment that one owns. This type of insurance is essentially a hybrid of both homeowners insurance and of renters insurance as would be logical.
Condo insurance coverage is for the various fixtures, appliances and personal belongings within condominium units. It differs from homeowners insurance in that it will not cover the actual structure of the building; this is generally covered separately, usually with the HOA’s policy.
Condo insurance is designed for all who own a condo and live within it. Should you be renting a condo out to a tenant, you would likely need additional coverage, such as “landlord” insurance, contingent upon the details of the condo master policy.
Insurance for condos is not much different from other kinds of property and casualty insurance coverage. A good condo insurance policy should financially protect you from such things as fire and weather damage. Should one of those covered events happen, the next step is to the insurance agent and make your claim. Next is the insurance adjuster who pays you a visit and then makes a determination as to the validity of your claim and how much compensation to which you are entitled.
Basically there are two kinds of condo coverage, one being the building master policy and the other suited for individual units. The building owner or the HOA or condo co-op generally pays for the building master policy, which provides protection for just the external structure and shared areas. There is an exception in which some policies also cover internal walls and floors, but most do not have this option. A condo policy for individual unit owners covers the various fixtures, appliances and the owner’s other belongings within.
One of the biggest benefits of condo insurance is that you are protected along with your unit and your personal items from loss resulting from some covered event or accident. If you opt not for this coverage, you will probably not be protected in the event that your condo home is damaged or destroyed in a fire, storm or some other covered event. Many policies also include “loss-of-use coverage”, which pays for lodging in the event that your condo becomes uninhabitable. Some condo policies will provide personal liability coverage for the possibility that someone is hurt in your unit and also can even cover certain personal items outside of the unit, such as your jewelry or art or the BBQ on the patio, etc.