Condo insurance (also called an HO-6 insurance policy) is like homeowners’ insurance in that it covers your personal property, liability, and some structural elements of your home.
Commonly described as “walls-in coverage”, condo insurance offers limited protection for damage to the building that occurs outside your condo. You can purchase condo insurance whether you’re renting a property or buying a condo.
Depending on the level of coverage you prefer, you can purchase a condo insurance policy in Florida for either the actual cash value or replacement cost of your dwelling and property. A replacement cost policy is more expensive, as it pays to replace any damaged items up to your policy’s limits without accounting for depreciation.
NEU will customize condo insurance policies to your specific needs, situation, and risk profile. Most policies include the following coverage options.
- Dwelling coverage: Your policy’s dwelling coverage generally includes damage to all items that are permanently affixed within your condo but not covered under your association’s policy. This can include elements such as your walls, flooring, and countertops. Dwelling coverage can also cover any alterations or improvements you’ve made to the condo.
- Personal property: This provides coverage if your belongings are stolen or damaged, either while inside your condo or outside the premises. Personal property coverage includes a wide variety of items, including clothing, furniture, technology, and other home furnishings.
- Loss assessment: Damage to or within common areas is partly your responsibility as a condo owner. While the condo association should have an insurance policy, you may need to cover any costs that exceed its limits. By Florida law, your condo insurance policy must include at least $2,000 of loss assessment coverage, which can be used to pay for losses that exceed your association’s policy limits.
- Personal liability: Personal liability coverage helps cover your defense costs and pay for damages if somebody files a lawsuit against you claiming injury or property damage. For example, if a friend slipped in your condo and fractured a bone, this coverage would provide protection in case your friend sues you. Liability coverage for your pet is also available through NEU in case they injure or bite someone. Pet liability coverage is not provided by every insurer, so be sure to ask about this when requesting a quote. Trust the guidance of your NEU representative to make sure that your concerns are addressed in this area.
- Loss of use: Loss of use coverage helps you pay for lodging, food, and other living expenses you will incur if your condo is damaged badly enough that you’re unable to inhabit it for a period of time. This coverage may be limited to a percentage of your personal property limit, so it’s wise to confirm this detail when buying a policy.