Colorado Residents - What you need to know about Condominium/Townhome Insurance
Serving Denver, Golden, Lakewood, Arvada, Morrison, Evergreen, Littleton and Summit County
What is Condominium/Townhome insurance?
Condominium or townhome insurance is similar to homeowners insurance but is designed for the specific needs of condo living. Many families choose to live in a condo or townhome due to of the convenience of the owners reduced maintenance responsibilities and access to community amenities. In this environment, the main structure of all buildings and common areas are covered by an insurance policy held by the condo association, sometimes called the Master HOA insurance policy. The unit owners condo insurance policy is designed to cover property damage and liability risks of the unit owner which are not the responsibility of the HOA.
What kind of Coverage does a Condo Owner Need? Here are 5 Basic Coverage Types
The HOA by-laws of most condominium and townhome associations dictate the HOA Master insurance policy replace the structure in the event of a loss. This means that policy pays to replace the frame, foundation, walls, interior pipes and drains, roof and common areas. The unit owner is responsible to replace 'from the drywall inward'. This can include the drywall, all fixtures, flooring , cabinets, sinks, tubs, toilets, countertops doors and maybe even the windows. In other words everything ATTACHED to the interior of the condo. This translates to 'building coverage' on a condo owners insurance policy. You need to make sure the policy has enough coverage according to current labor and material costs in your zip code.
This coverage is intended to replace all the items in the condo that AREN'T attached to the structure such as appliances, furniture, dishes, clothing, home décor, sporting equipment etc. Make sure your policy includes 'replacement value' for your personal items as some policies will replace them at ACV (actual cash value or depreciated value)
What if someone were to get injured while in your home? Or who would pay to repair damage to another unit if a fire started in your unit and spread to other units? Liability coverage is essential to have on any type of home policy whether it be a renters policy, homeowners policy or Condo/Townhome policy.
Loss of Use
Pays additional living expenses if the policy holder is misplaced out of the home while it's being repaired
In general, if an insurance claim is submitted on the master HOA insurance AND:
the policy does not have enough coverage to repair or replace the damage AND
you are 'assessed' your prorated portion of the HOA insurance deductible, this coverage will reimburse the policyholder for 'assessed' monies.
Only the 2 types of losses listed above will apply. Other loss assessments such as those due to a maintenance assessment would not be paid under this coverage.
There are other optional coverages you can purchase such as sewer & drain or a jewelry floater. Make sure to inquire about these additional coverage types that might be available.
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to learn more about protecting your home with condominium insurance. We are a local insurance broker and our agents are standing by to receive your call and answer additional questions your might have regarding the purchase of a condominium/townhome policy.