What You Should Know About Condo Insurance

September 16, 2021

If you live in a condominium, you probably have some type of condo insurance coverage. Nearly all condos are part of an association with an insurance policy that covers your condo. However, condo insurance usually covers only building exteriors and common areas. That means it probably doesn’t cover what is inside your condo unit.

What does your condo insurance policy cover?

Before deciding on the coverage you need, review your condo association master policy. It may not be easy reading, but it is important to understand where the association policy ends and your individual condo insurance coverage begins. Generally, there are three different kinds of condo insurance policies:

  1. All-in and all-inclusive – All of the condo’s exterior and interior surfaces, including fixtures, installations and additions are covered. You will still need a policy to cover your personal property.
  2. Special entity – This is similar to the all-inclusive policy, except that fixtures, improvements and additions are not covered. For example, if you remodel your bathroom, the fixtures and improvements wouldn’t be covered by the master policy. As above, you will also need to make sure your personal property is covered.
  3. Bare walls-in and wall studs-in – This option offers the least amount of coverage because only the bare structure is insured. You will need to have a policy that protects your condo’s interior, including your personal property. Think in terms of a total loss. Estimate the cost to replace everything, including the plumbing, electrical, drywall and paint.

Condo insurance coverage. Interior view of condo

H06 condo insurance

H06 insurance protects your condo and covers damage to interior walls, floors and ceilings caused by:

  • Theft
  • Vandalism
  • Smoke damage
  • Frozen pipes
  • Fire
  • Weather (with some exceptions, like hurricanes)

Related: Homeowners Insurance: What’s the difference between HO-3 and HO-5?

Notable exclusions

Note that flood, earthquake and sinkhole damage is not listed and may not be covered by many H06 policies. If you want flood, earthquake or sinkhole protection, talk to your insurance professional.

H06 condo coverage basics

Ask your insurance adviser about your H06 policy and whether it covers “all perils” (most comprehensive) or “named perils” (not as comprehensive).

An H06 policy usually protects you against a liability claim if someone is injured in your unit. Coverage generally ranges from $100,000 to $500,000, so make sure you select the appropriate limit for your situation. Keep in mind that your liability coverage includes libel and slander protection, too.

H06 policies also cover your personal belongings. Personal belongings are generally defined as anything you can take with you if you move. Make sure to value your possessions properly. Consider what those items would cost if you had to replace them now, not their purchase price.

Coverage options for your condo policy

Language is everything, so make sure you’re clear on what your H06 policy covers and what your condo association’s master policy covers. Then create a policy that covers the gaps.

Personal umbrella

Extend broad coverage across your condo and auto policies for even more protection.

Loss of use

If your condo is uninhabitable because of damage from a covered incident (like a fire), loss of use coverage helps to reimburse your cost to live elsewhere.

Sewer backup

If sewage backs up from the pipes and into your condo, you’ll need sewage backup.


If water flows into your condo, you’ll need flood insurance. Keep in mind that most floods happen outside of flood zones.


If the earth moves and causes damage to your condo, you’ll need earthquake insurance.

Loss assessment coverage

Loss assessment coverage (or unit assessment coverage) will help you pay for covered condo association-related incidents that occur in common areas. If the claim exceeds the condo association’s policy limits, the condo owners might end up paying the difference as a special assessment.

Reach out for a coverage review

Choosing how much coverage you need can be difficult but it doesn’t have to be stressful. We can help you create a condo policy that protects what’s most important to you. As independent agents, we work with multiple companies to find you the best quotes on your coverage. Just follow the steps below:

Getting the right insurance coverage doesn’t have to be complicated or stressful. I’m here to  help you save time, save money, and have peace of mind.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.

Copyright © 2019 Applied Systems, Inc. All rights reserved.

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