HO6 Insurance : What is Condo/Townhome Insurance and why you need it?

Is condo insurance required?
If you have a mortgage on your condo, your lender will typically mandate an HO-6 policy. Additionally, your homeowners or condo association may require certain coverages and limits. However, even if your condo association has no stipulations and your condo is paid in full, condo insurance is highly recommended—after all, your condo is likely one of your most important and valuable assets.

What does condo insurance cover?
Like homeowners insurance, HO-6 insurance safeguards against property losses and liability claims, except in cases where your condo association's master policy provides coverage. Here are the standard condo insurance coverages:

Commonly covered perils
Perils are events that can cause damage to your condo unit or personal property. Here are a few examples of perils typically covered under condo insurance policies:

• Fire and lightning
• Windstorms and hail
• Theft and vandalism
• Weight of ice, snow, and sleet

What's not covered under condo insurance?
Your HO6 insurance policy will have a list of coverage exclusions. The following are common examples of what's not covered:

• Earthquakes
• Flooding
• Damage from termites
• Wear and tear
• Special Assessments imposed by the HOA

Condo insurance also won't cover damage to shared areas of your condo complex, including any property your condo association owns. From your building's stairwell to your development's party center, your condo association's master policy protects all of your complex's common areas.

Loss Assessment
Loss assessment coverage is an optional endorsement that you can add onto your homeowners insurance or condo/townhome insurance policy. It helps protect you if you live in a shared community with a homeowners association (HOA), where you're responsible for a portion of damage or loss in a common area (like a shared roof). I highly recommend getting quotes for $15,000 to $50,000 coverage added to your policy. It's not very expensive and can really save you from a huge expected bill from your HOA.

What is HOA insurance?
Your homeowners association (HOA) is responsible for carrying a master insurance policy to insure the common areas of your condominium development. A portion of the cost for a master policy is usually included in your monthly or annual HOA fees. The master policy protects against damages or injuries that occur in the "shared spaces" (including meeting rooms, swimming pools, tennis courts, etc.) of your complex. Coverage limits and exclusions on your HOA master insurance policy will vary based on your condo association and can help determine what's necessary for your own condo insurance policy.

For help with insurance, please contact our trusted business partners for a no-obligation quote:

• Steve Leech | American Family Insurance | (303) 467-3571 or sleech@amfam.com
• Michele Valentino or Josh Furry | Evertree Insurance - (303) 431-9351