HO-6 insurance: How much condo insurance do I need?

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Many individuals think that since the association owners have purchased insurance on the association they don't need insurance to protect their home. While it is true that the association owner will cover if your condo roof flies off, it will, however, not cover damage to any item inside your condominium. So, you need to get a separate coverage for your own safety.

What does HO-6 insurance cover?

A typical condominium insurance covers damage to your condominium, your belongings from perils like lightning, explosion, hail, windstorm, fire, civil disturbance, vandalism, theft, damage from falling objects, aircrafts or other vehicles and smoke.

How much condo insurance do you need?

To be able to determine how much condo insurance you need you must make a checklist of things you have to insure. You can begin by reading the master policy for the association. By reading the master policy you can find out what it covers and how much your condominium will be protected in case of any damage.

You can make a list of the things you would be responsible for like the flooring of your condo or the wall coverings, the plumbing fixtures, cabinets, any built-in appliances, lighting fixtures and any improvements made to your condo. Take some time out to add everything up to get an idea of home much condominium insurance you need.

Making a list of the personal property that you own would be a good idea to assess properly the amount of insurance you need to buy. Ask your agent for a content replacement option and how much it would cost you. Set your personal liability at a high limit to get a good amount of coverage. You could do the same for 'Loss Assessment' to cover you for big losses.

What you need to know before buying condominium insurance?

Master policy: Go through your master policy for the condominium to find out how much you are covered under that policy. Based on that you could assess what you need to cover to protect your condominium and your possessions from any damage due to a peril.

Deductibles: There is usually an association deductible in condominium insurance. So in case of a disaster be prepared to pay the deductible that will be divided amongst the unit owners.

Coverage required: Determine what you need to cover in your condominium and based on that draw up an assessment of the amount you need to invest in insuring your property.

Cash value or replacement cost: Find out which one you are opting for. A cash value will give you only the current value of an item minus the depreciation costs while a replacement cost would offer the total cost of replacing the item.

Interior structure and contents: Your association will not cover your personal property and the contents inside your condominium. You need to purchase coverage for the structure of your home and the contents inside your condo separately.

Flood and wind coverage: Make sure you buy flood if you live in a flood prone zone. Wind coverage is generally included in a typical policy.

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PostPosted: Tue Jun 12, 2007 3:40 am   Post subject: HO-6 insurance: How much condo insurance do I need?  

I have a question about ho-6 insurance. I need to purchase an ho 6 insurance policy which will, among other things, cover replacement cost for internal real property (drywall, wall coverings, carpet, window treatments, etc.). What's the rule of thumb on how much coverage to get for internal real property? The purchase price of my condo was $115k.


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PostPosted: Tue Jun 12, 2007 3:02 pm   Post subject: How much condo insurance do I need?  

Hi,



First of all, read a copy of your associations policy. Find out what the master policy covers and what it doesn't.



Next, Make a list of what you may be structurally responsible for, for example: Any kind of flooring(hardwood,ceramic, and/or carpet), Wall coverings, Cabinets, Built-in appliances, plumbing fixtures, Lighting fixtures, and any improvements that have been attached and/or built on. This would go under your coverage "A." Most policy start out at 1,000, as you can see it can exceed over 100,000 easy. Take ten Minutes to add everything up, it will give you an idea.



Also, Make a list of your personal property, this would go under coverage "C." I would make sure you have a contents replacement cost option.



Have your personal Liability at a high limit, like 300,000-500,000 this is very inexpensive for a good amount of coverage. This would be Coverage "E."



Make sure you have high limits on "Loss Assessment," most commonly there are inadequate limits on this coverage. I would suggest having 50,000, also a very inexpensive option.



LOSS ASSESSMENT HELPS WHEN - Big Losses occur---> Associations limits gets exhausted----> Remaining damages divided up between condo owners.

Then go over any additional coverages you may need, for example: water backup, scheduled property, Earthquake, ID Theft, and many more.





I Hope this helps you in purchasing an ho 6 insurance , GOOD LUCK!



THANKS,



AGENT CLINT

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PostPosted: Tue Jun 12, 2007 8:39 pm   Post subject: HO 6 insurance for condo: $15k-$20k should be sufficient  

On a $115k Condo, you would probably be alright with $15k-$20k worth of condo insurance. You can figure your personal property limit fairly easily by adding up your personal belongings. There are no "Rules of Thumb" for ho-6 insurance but I think if you come in somewhere in that range you should be fine.

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PostPosted: Thu Jun 14, 2007 3:56 am   Post subject: ho 6 insurance policy..lets try it !  

My Friend,



There are no basic thumb-rules designed to determine the volume of ho6 insurance one may need but yes, the purpose of such rules may be summerized as follows:



# Find and rule the the causes of fines and foreclosures

# Sge-restricted condominiums should be set up abiding by the discrimination laws.

# You should also know how to draft documents (both the general developments docs as well as those pertaining to the homeowner's associations).

# Gain expertise towards settling issues referring to the clashes between govt. rules and association rules.

# Gain expertise to solve the liability disputes.

# The client-related issues arising out of construction defect litigation and false claims should be confined to you.



Regards, Evan T. Smith

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PostPosted: Tue Jun 30, 2009 9:48 am   Post subject:   

Hi Guest, the ho-6 insurance can be divided into two parts. One part would cover the dwelling and the other would protect your personal belonging. At times the condo masterÂ’s policy would provide all in coverage, i.e. it would also cover your condo unit. However, the dwelling coverage generally covers the interior of the unit from,



* Fire & storm

* Accidental water damages (except flood; you need * separate policy for that)

* Damages caused by freezing of water pipes

* Theft and vandalism

* Explosion, and the like



For your personal belongings, you may add up the costs of each item and purchase coverage upto that level.

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PostPosted: Tue Feb 09, 2010 7:18 pm   Post subject: florida HO6 policies  

Is glass a mandatory coverage for Florida HO6 policies. What is the form number?


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PostPosted: Wed Mar 03, 2010 9:10 am   Post subject: black mold  

i currently own a condo where black mold was discovered. it is not know yet if it came up from the unit below. what is my 1st step? is black mold covered thru the master policy or my h06?


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PostPosted: Thu Apr 15, 2010 5:41 pm   Post subject: Mandatory or not ?  

Is it mandatory to have this insurance on a Florida Condo. If it is not can you plese direct me to written documentation saying that it is not mandatory. Thank you !


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PostPosted: Wed May 26, 2010 1:37 am   Post subject: ho6  

The purchase price of my condo is with new air conditioner I am installing$60,000. The outside of the building is not my responsibility. How much coverage do I need.


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PostPosted: Wed Jul 21, 2010 7:39 pm   Post subject: allstate condo insurance  

I am looking for a NJ HO-6 policy that covers sewer and drain backup damage in my Condo.. My preset policy carrier is AllState and they preclude sewer and drain backups. My Condo Association as a $5000 detuctible on their insurance, which leaves me vunerable up to their $5000 detuctible.


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PostPosted: Fri Jul 30, 2010 2:18 pm   Post subject: ho6  

does this also cover central air conditioner? Very Happy


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PostPosted: Sun Aug 01, 2010 9:55 am   Post subject:   

Quote:
I am looking for a . . . HO-6 policy that covers sewer and drain backup damage in my Condo.




This is a standard exclusion in all HO policies (not just HO-6) from all carriers. It is in the same category as "tidal waves", "water" (other than sudden bursting of pipes, or contingent to another covered loss), and "flood", but even a NFIP flood policy is not going to cover sewer backup.



The Commercial Property and Liability Policy owned by the Condo Association is not going to cover sewer backup either, in the same manner as an HO policy.



Although once covered, mold (your choice of color) has also become a standard exclusion in both homeowner's and commercial property policies as the result of frequent claims in the past (mostly in the 1990s).



Central air conditioning/heating units are only covered to the extent they are damaged as the result of some other covered loss (such as fire or collapse) external to the unit. They are not covered for mechanical breakdown (wear and tear) or inherent defect (covered by a manufacturer's warranty) -- for example, if an electrical component of the A/C causes a fire, the damage external to the A/C would be covered, but the internal damage to the A/C most likely would not.



As a condo owner, your liability for property damage includes all of your personal property and the hard assets of the condo to the interior walls. The structure itself, is covered by the Condo Association's policy. So when attempting to determine how much coverage you require, you'll need at least as much as it would required to completely rebuild the interior of the unit -- walls, fixtures (plumbing, electrical, etc), appliances, floor and window coverings -- and to replace your personal property -- clothing, furniture, linens and towels, china and silverware, guns, jewelry, fine art, books and valuable papers, electronics, and other contents (some of which, based on type or value, may need to be covered with an "inland marine floater" of one type or another).



The services of a local agent are invaluable when it comes to understanding and determining your coverage needs, and the proper coverage "forms" necessary to properly protect you and your "stuff".


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PostPosted: Sun Aug 01, 2010 10:16 am   Post subject:   

Quote:
Is it mandatory to have this insurance on a Florida Condo. If it is not can you plese direct me to written documentation saying that it is not mandatory.




Insurance is rarely "mandatory" according to state laws. However, a mortgage lender or a Condo Association's CC&Rs may have their own requirements that force you to obtain certain minimum coverages as a "condition precedent" to financing or occupancy. This is not unlawful.



If those things are true, then state insurance laws permit you to obtain coverage from any agent or company of your choosing. You cannot be required to use the lender's own insurance company or the Condo Association's agent or insurer.


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PostPosted: Thu Aug 12, 2010 8:37 pm   Post subject: HO-6 Condo Insurance  

Does HO-6 Condo insurance cover personal contents along with appliances , plumbing, walls on inside?


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PostPosted: Fri Aug 13, 2010 12:31 am   Post subject:   

Yes, that's why you buy an HO6. Liability and PERSONAL PROPERTY coverage.



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