Condo Unit Owners
If you own a condo unit, you need unit owner’s coverage, also known as an HO6 homeowner’s policy. HO6 policies are very cost effective policies and provide excellent personal coverage.
An HO6 homeowners policy provides coverage for your individual unit, as opposed to the master policy, which covers the building’s common areas.
An HO6 homeowner’s policy has 5 basic areas of coverage:
1. Dwelling Coverage- covers your unit’s walls, ceilings, and floors. Some building master policies cover your unti as well, so you might not need to insure for the full replacement cost. There is a larger deductible on the master policy, however, and most unit owners do carry around $10,000 of dwelling coverage.
2. Personal Property- covers your personal property such as clothing, electronics, furniture, fixtures, books, artwork, etc. The building master policy does not cover this. A home inventory is very important to prove ownership of personal property
3. Loss of Use- if you home is damaged and needs repair, you will need someplace to live. Loss of use coverage pays for living expenses while your home is being repaired.
4. Personal Liability- covers you from personal liability claims. The classic example is a “slip & fall” in your home, and you get sued. The list goes on and on, which shows how important it is to have enough liability coverage.
5. Medical Payments- if a person is injured in your home, and is not named on your policy, this would pay for minor medical payments.