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What are condo and co-op insurance policies?


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Purchasing insurance for a co-op or condo is a bit different than purchasing insurance for the average home structure, because you do not own the whole living structure. There are normally two types of policies involved with condo insurance. The master policy, which is given by a condo association for the building, and your own policy, which is always done on a standard form called HO 6.


If you already are aware of what is insured by your master policy, and decide to get individual coverage also, it will insure against any uncovered material from the master policy. With all that coverage, you will have a shield against mostly every type of situation in need of insurance.


The general things you use with other tenants is covered by the master policy, and maintained by the buildings property. These areas contain the stairways, roof, basements and elevators. The master policy protects the policyholders against liability and physical damage on the building.


The master policy will also cover personal units, as it was originally built. It is vital to understand what a master policy provides to you, so you can acquire the correct individual insurance for your living space and your personal contents. For example, the master policy could cover original hardware, but does not cover anyimprovements in hardware.


If you or the previous tenant has done renovations, you want to make certain that they are insured with your individual policy. The co-op board or the condo association is able to give you the information you need to make the decision, or they will also give you the needed documents and forms so you can analyze the coverage.


Normally, your co-op or personal condo coverage is to be composed on a HO 6 form. While liability insurance on form HO-6 is alike to what you find in some different homeowner's policies, coverage for the property is unique. The HO 6 form protects your personal belongings, and some other property like renovations, additions, private garages, private entrances, and other property that your insurance is responsible for the co-op or condo documents.


Nevertheless, the policy only will cover physical damage to your property if it was caused by a hazard stated in your policy. That includes lightning, fire, storm, explosion, riot, smoke, vandalism, vehicles, and theft to name just a few. Look over the policy for hazards that are covered, and remember that you will always have the option to buy coverage for your protection from additional hazards.


A condo insurance policy has one very distinctive feature. When a loss is insured by the co-op's or condominium's master policy and also is insured by your own individual policy. Your homeowner’s insurance policy only will pay for the remainder of the cost after the master insurance policy pays their entire limit.


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