The short answer
Understanding the Condo Master Policy
Your condo association holds a master insurance policy. This policy typically covers the building's exterior structure, common areas like hallways and roofs, and shared systems such as plumbing and electrical. The specific coverage details are outlined in your association's governing documents. Obtain and review a copy to know exactly what the association insures, as this directly affects what you need to cover yourself.
Your Essential Ho-6 Policy
An HO-6 policy is the standard insurance for condo owners. It covers your personal property, such as furniture, clothing, and electronics, against perils like fire, theft, and water damage. This policy also includes personal liability coverage, which protects you if someone is injured in your unit.
The HO-6 policy also covers "unit improvements and betterments." This means it can pay to repair or replace the interior elements you own, like upgraded flooring, kitchen cabinets, and bathroom fixtures. The coverage amount for these items should reflect their current replacement cost, not their original purchase price. This ensures you can restore your home to its pre-loss condition after a disaster.
- Personal property (contents of your unit)
- Liability protection for injuries or property damage
- Loss of use or additional living expenses
- Unit improvements, upgrades, and built-in appliances
- Deductible assessments from the master policy
- Medical payments to others for minor injuries
Where Water Damage Coverage Applies
Water damage coverage in a condo can be complex. The master policy usually covers pipes inside the walls and common supply lines. Your HO-6 policy typically covers the water damage to your personal belongings and the interior surfaces of your unit from a leak. However, if the leak originates from another unit or a common area, liability may shift.
For example, if a pipe bursts inside your wall, the master policy may cover repairing the pipe and the wall structure. Your HO-6 would then cover the damage to your drywall, flooring, and furniture. Knowing your unit's plumbing layout can help you act quickly. Always contact your insurer and the condo association immediately after discovering water damage.
Addressing Gaps in Coverage
A common gap is loss assessment coverage. If the condo association's master policy has a high deductible for a shared loss, the cost may be divided among unit owners. Your HO-6 policy can include loss assessment coverage to help pay your share. Another gap involves specific flood or sewer backup damage, which is often excluded from standard policies and requires a separate endorsement or policy.
Review your policy's limits and exclusions annually. Ensure your personal property coverage limit is high enough to replace all your belongings. Consider adding endorsements for valuable items like jewelry or art. Discussing these scenarios with your insurance agent helps you understand potential out-of-pocket costs and tailor your policy to your specific risk profile. Policies vary, and your insurer decides what is covered.
Steps After a Water Loss
When water damage occurs, your first call should be to stop the water source if it is safe to do so. Then, immediately notify your condo association's management and your own insurance company. Take photos and videos of the damage and any visible source. This documentation is vital for your claim.
Protect your belongings by moving undamaged items to a dry area. The condo association will likely contact their insurer for common areas. You are responsible for mitigation inside your unit. Local water damage pros can perform emergency water extraction and structural drying to prevent mold. Keep all receipts for any temporary repairs or professional services.
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Call Now (405) 565-9833Frequently asked questions
Does my condo insurance cover damage from the unit above?
Your HO-6 policy covers the damage to your unit's interior and belongings. The liability for the repairs may fall to the upstairs neighbor's policy if the leak originated from their negligence. Your insurer may seek reimbursement from their insurer. Always report the incident to both your association and your own insurance carrier immediately.
What is loss assessment coverage?
Loss assessment coverage is part of an HO-6 policy. It pays your share of costs for common property that the master policy doesn't fully cover. This can include a portion of the master policy's deductible after a major loss. The final cost depends on the size of the loss and how many units share the expense.
Is flood insurance included in condo policies?
No, standard condo insurance policies do not cover flood damage. Flood insurance is a separate policy from the National Flood Insurance Program or private insurers. If your building is in a flood zone, the association may have a master flood policy for the structure, but you would need your own policy for your personal contents and unit interior.