How Much Coverage Do I Need for Condo Insurance?

 In Insurance Tips & Info, Property Insurance

If you own a condominium, then you’ll know that condo insurance can be complicated to navigate, especially as a new owner. Condo owners and condo corporations are liable for different aspects of the condo building and the individual units, and it can be tricky to understand where your responsibility begins as an owner.

As a result, one of the most common questions that we receive from condo owners is, “How much coverage do I need for condo insurance?”

In today’s market, there are many different types of condominium insurance coverage. Every condo building operates slightly differently, so it is important to read your condo code and understand your responsibilities.

Most policies will offer a good basic level of coverage, but you may need to customize a policy to fit your specific situation. It is important to speak with a professional insurance broker, who will be able to help you find the right solution.

Condo Coverage Is Changing

In the past, condo insurance was primarily based on contents coverage and was related to the value of your personal possessions inside the condo unit. Today, condo insurance offers more of a blanket level of coverage, while giving you the option to select additional coverages.

Condo owners are paying to protect more than just their own unit and their belongings, they are also protecting shared used areas, such as parking facilities, onsite gyms and pools, and common rooms. In some cases, you may even be required to contribute to the upkeep of the building exterior if it is damaged.

The good news is that insurance companies have gotten better at predicting what the average condo owner is likely to require in terms of coverage. The insurance product has improved on the whole and the end result is that people are typically over insured, in a beneficial way.

Typical Condo Insurance Coverage

Here is what you can expect from your standard condo insurance policy:

  • Contents Coverage — Coverage for your personal possessions.
  • Property Damage — Protection against damage to your unit (or adjacent units) from fire, smoke, extreme weather, and theft or vandalism.
  • Improvements & Betterments — Coverage for any upgrades made to your condo unit.
  • Personal Liability — Protection if someone is injured in your condo unit.
  • Assessments — Coverage for injuries in/damage to common areas of your condo complex, which your Condo Board can ask you to contribute toward paying.

Common Options for Additional Coverage

If you feel that the standard coverages are not sufficient for your specific situation, there are a wide range of options available. Here are a few of the most common add-ons that we see with our customers:

  • Water Protection — Protection against sewer backups and/or flooding in your unit, depending on the provider.
  • Personal Umbrella Liability — Recommended if you serve on the Condo Board and have additional liability risks, or are looking for increased liability protection.
  • Home-Sharing — Required if you intend to use your unit as an AirBnB or VRBO, pending the approval of your Condo Board.
  • Home-Based Business — Coverage for any equipment, materials, or data associated with your home-based business.

Want to know how much coverage you will need for your condo insurance? Request a quote from our team today.

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