Compare Condo Insurance Policies Near You
Condo insurance is mandatory if you have a mortgage or your condo association demands it. Read tips on comparing condo insurance policies near you today.
Purchasing a new condo is an exciting experience. The legal aspects of the transaction might be less exciting albeit necessary to get you into your home. Purchasing condo insurance, officially referred to as HO-6, is mandatory if you have a mortgage on the unit. Most condo associations also require residents to purchase condo insurance to cover anything the condo association master policy does not. What is the difference between HO-6 condo insurance and condo association master policy coverage? Do basic home insurance policies also cover my needs as a condo owner?
Condo insurance is a type of home insurance specific to the unique needs of condo structures. What are the benefits of purchasing condo insurance? What are the top providers today and how do I compare their pros and cons? Read ahead for tips on how to compare condo insurance policies near you today.
Condo Insurance 101
Condo insurance is a type of home insurance referred to as HO-6. Purchasing condo insurance is mandatory if you finance a mortgage on the unit. Mortgage lenders require borrowers to insure condos as a way of protecting borrowed funds from damages or loss due to natural disasters, fires and other scenarios (perils). Condo insurance protects more than mortgage funds, however. Condo insurance protects against damages & destruction to the inside of the unit as well as theft of personal property. Liability coverage for injuries sustained by other people while in your condo is also provided.
HO-6 policies are unique from other types of home insurance policies because of the way condo buildings are structured, owned & operated by third parties. Certain areas of condo buildings and properties (swimming pools, tennis courts, hallways etc.) are considered common/public areas. The majority of condo buildings/communities are managed/operated by a condo association, which is similar to a homeowner’s association (HOA). The condo association in charge of your building is required by law to have a condo association master policy, which provides additional coverage your HO-6 does not. All condo association master policies are not drafted equally, however. Some require residents to pay for additional expenses in the event claims are filed.
Condo Insurance, Condo Association Master Policy Coverage & Home Insurance - What’s the Difference?
The primary difference between condo insurance and basic home insurance policies is how much each policy is required to cover/protect. Even the most basic home insurance policies cover inside and outside structures of a home and personal possessions within it. Home insurance also covers the lot (land) and other structures on the property such as sheds/garages. Condo insurance policies cover the inside of your condo plus applicable personal possessions, but commonly not the outside of the structure.
The outside of your condo and all common areas around/in the building are typically covered by a condo association master policy. Some master policies also include limited coverage for the inside of your condo, but not all. Your condo association pays the premiums for the master policy, whereas responsibility for its deductibles varies per situation. Some condo associations pay all master policy deductibles. Some split the deductible costs with residents. Other condo associations require residents to pay for all deductibles, so it is important to understand the details of the master policy prior to signing any agreements.
Finally, home insurance is only required as a condition of obtaining a mortgage. Is condo insurance still required if you pay for your condo in full with cash? Condo insurance is not required by law but might still be required by your condo association as condition of entry/residence.
Benefits & Coverages
Who benefits from having condo insurance? The truth is everyone from you, your family, your mortgage lender and the condo association all benefit from you purchasing condo insurance. Your condo is perhaps the most valuable asset you own and it makes sense to protect it. Insurance companies officially refer to potential damage-causing issues & threats as perils. Perils include fires, high winds, falling trees and lightning strikes. Perils also include vehicles or airplanes crashing into your condo and causing structural damages, explosions and more.
The personal and financial benefits of insuring your condo against damages/loss due to perils are multiple. The ability to replace your home and belongings without suffering major financial losses cannot be understated. Condo insurance also covers:
- Extra living expenses if an approved peril renders your condo unlivable
- Liability if a third party is injured in your residence
Top 3 Nationwide Condo Insurance Providers (and their policy pros & cons)
Choosing the best condo insurance provider for your needs requires an understanding of the pros & cons associated with each company. Utilizing resources such as the National Association of Insurance Commissioners (NAIC) helps you compare various companies and Insurify.com helps you locate condo insurers near you. The top 3 nationwide condo insurance providers in 2021 are:
Amica was founded in 1907 and began offering home/condo insurance polices in 1956. Over half a century of experience is only part of why Amica is the number one condo insurance provider in America. Cons for choosing Amica include a lack of local agents and availability in every state. Pros include cash dividend payout policies and highly competitive premium rates. Amica also makes doing business easy with online claims options and a free smartphone app.
Allstate is a household name with a high national popularity ranking. The only real con to Allstate condo policies is higher-than-average premium rates. Numerous pros include a user-friendly website, significant discount opportunities and exceptional customer service. Allstate also makes 1st-time insurance purchases easy for new customers.
Nationwide is another household name insurance provider in 2021. Nationwide was founded in 1926 and has therefore almost a century of insurance industry expertise. Cons for choosing Nationwide include lukewarm customer service ratings and expensive add-on prices. Multiple pros include a wide array of policy options, user-friendly application/claims processes and money-saving discounts rivaling those offered by Allstate.