If you have just purchased a beautiful Condo Unit in Sunny Isles Beach and are shopping for the right insurance plan, you may find the options overwhelming. Even the "experienced" Condo Owners can be confused by the industry terms, exclusions, deductibles and significant difference in premiums offered for what looks like the same package.
This article answers four main questions on Condo Insurance that our customers usually come to us with.
What does Condo Insurance cover?
HO6 Condo Insurance Policy is designed for Condominium Owners and is offered for a 12-month term. While the unit's exterior and the common areas of the building are covered by the association’s Master Policy, HO6 insurance provides the following coverage options:
- Interior: covers the damage to Walls, Floors, Built-in Appliances and Fixtures;
- Personal Property: is used to fix or replace Furniture, Electronics and other belongings (even if damaged outside of the unit);
- Loss of Use: covers any additional expenses of the owner during home repairs (including Loss of Rents if the condo is being leased);
- Personal Liability: protects the owner in case of the property damage or bodily injuries caused to others (including legal defense expenses);
- Medical Payments: covers small medical expenses for the non-residents that suffered bodily injuries (X-ray, ambulance, dental, etc.)
Additional coverage options can be included:
- Increased Coverage Limit for Mold damage (usually HO6 policy has a set limit for certain kinds of damage, but it can be increased);
- Increased Coverage Limit for Jewelry, Cash and Securities;
- Water Back-Up: covers cleaning expenses after the Toilet Overflow damage;
- Windstorm Coverage: protects the interior and personal property damaged by the strong Wind (Hurricane, Cyclone, Tornado, etc.)
Choosing the Deductible (out-of-pocket maximum you are responsible for before the Policy Coverage is applied) remember: the lower it is, the higher the annual premium will be.
What does Condo Insurance protect against?
HO6 policy protects the unit owner against the following risks (unless specifically excluded):
- Fire or Lightning;
- Windstorm or Hail;
- Riot or Civil Commotion;
- Vandalism or Malicious Mischief;
- Falling Objects;
- Accidental Discharge or Overflow of Water from Plumbing, Heating, Air Conditioning or Household Appliances
When is Condo Insurance Required?
You can legally own a home or a condo without carrying insurance. However:
- Mortgage: if the Condo is financed, insurance will be required by the Lender before closing;
- Wind Pool Area: if your property is located East of I-95, and Sunny Isles Beach is, you are in a zone with a high risk of a Windstorm occurrence and it would be reasonable to get Windstorm Coverage (If financed, the Mortgagee will most likely request to add this coverage);
- Condo Association: insurance may be required by the Association Board. (By the way, if you are insuring a townhouse check with the Association if there is a Master Policy that covers structure and common areas, if they do - you can get an HO6 Condo Policy instead of the Homeowners Insurance.)
What are the Coverage Options for the Condo Tenant?
HO4 Insurance Policy is designed specifically for Tenants. It provides the same Coverage Options as the HO6 Policy. Only the damages to the Interior of the Unit (i.e. walls, floors, built-in appliances and other fixtures) are not included cutting the premium almost in half.
Tenants are usually required to obtain insurance by the Owners and the Condo Associations before they can move in to the unit.
We hope this article answered at least some of your questions about Condo Insurance and we will be more than happy to assist you further!
Photo source: Miami and Beaches on Sunny Isles Beach