Condo coverage

Condo coverage is a specific type of homeowners insurance (HO-6) that protects condominium unit owners against property damage and liability, according to the National Association of Insurance Commissioners (NAIC). Condo coverage pays for interior repairs after fire or water damage, such as replacing drywall, cabinetry, and flooring; State Farm data shows typical claims exceeding $10,000 for kitchen fires.

Condo coverage includes personal property protection for belongings like electronics, furniture, and clothing; the Insurance Information Institute (III) notes average personal property limits start at $20,000. Condo coverage excludes damages to common areas or exteriors maintained by the condo association; examples include roofs, hallways, and elevators managed under a master policy.

Condo coverage features liability protection if someone gets injured inside your unit; according to Travelers Insurance, liability limits often start at $100,000 per incident. Condo coverage can reimburse loss of use expenses–such as hotel bills–if a covered peril makes your unit uninhabitable; Allstate lists this feature as “loss of use” or “additional living expenses,” typically capped at 20% of dwelling limit.

Condo coverage may require endorsements for water backup or high-value items like jewelry and art; examples include a $10,000 jewelry endorsement available from Lemonade, per the findings of YourInsuranceInfo. Condo coverage usually mandates coordination with the HOA’s master policy for claim settlement; for instance, Farmers Insurance advises checking association bylaws for responsibility split.

Condo coverage deductibles range from $500–$2,500 per claim based on policyholder choice; USAA reports most customers choose $1,000 deductibles. Lenders frequently require proof of condo coverage before approving mortgages on condo units; Fannie Mae guidelines specify HO-6 policies as standard documentation.