A TX Owner’s Guide to Condo Insurance

Condo associations typically carry a property insurance policy for common areas of the building. To cover your own property, however, you must have a condo insurance policy. This coverage will generally protect your personal belongings and interior walls if they’re excluded from the condo association’s master policy.

Condo insurance differs from homeowners insurance as homeowners need to insure all their property, from structures to possessions. Condo owners typically only need insurance for the interiors of their condos and their belongings. For instance, a homeowners policy would cover fences and shrubbery in a natural disaster, where in an HOA policy, the fences and shrubbery would already be covered for condo owners as they are considered communal property.

Condo insurance typically covers:

  • Personal property, such as furniture, clothes and TVs from instances like theft and fire.
  • Interior walls and structures, if they’re not covered by the condo association policy.
  • Liability – in the event you are held responsible for damage or injury to someone else.
  • Additional living expenses if the condo becomes unlivable due to damage that’s covered by the policy.

A condo insurance policy will typically cover damage from the following perils:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Vandalism
  • Theft
  • Falling objects
  • Weight of ice, snow, or sleet
  • Unforeseen discharge or overflow of water or steam
  • Sudden and accidental tearing apart, cracking, burning, or bulging
  • Freezing
  • Sudden and accidental damage from artificially generated electrical current
  • Volcanic eruption

Condo insurance may also even cover personal property that is outside your home, such as a bike that is stolen outside your office or if your laptop is stolen from your car. The policy generally covers liability, such as a guests’ medical bills resulting from injuries that you’re responsible for and certain lawsuits.

The additional living expenses may include:

  • Hotel or rental home costs
  • Restaurant bills
  • Laundry
  • Pet boarding
  • Other additional expenses that you wouldn’t usually have at home

Actual Cash Value vs. Replacement Cost

You have the choice between “actual cash value” and “replacement cost” coverage for your possessions. This decision will impact how much you’ll get paid if your possessions are damaged. More often than not, replacement cost coverage is the better choice for people, but it also raises the cost of condo insurance, as it pays for new items that are of “like kind and quality.” The actual cash value will cover the value of items when they were damaged, taking depreciation into account.

Why Condo Insurance is Important

Mortgage lenders and HOAs typically require that all condo owners obtain insurance. It is crucial that you fully understand what your specific HOA master policy covers and does not cover. Contact your Sugarland condo insurance agent to see how you can be adequately protected. Depending on what the condo association policy covers, it is in your best interest to consider the following to determine how much condo insurance you will need:

  • The cost to rebuild or replace your condo. This depends on the master policy, as sometimes it does not include repairing or replacing items such as cabinets, lighting, or flooring.
  • How much your personal property, like clothing, furniture, jewelry, and other items is valued.

About Transparity Insurance Services

Transparity Insurance Services was founded for the purpose of helping clients to ensure their property and assets with no hassle. We are committed to providing a simple, easy, efficient, and positive experience to all of our clients, and prioritize open and transparent communication with our clients. Through our excellent customer service and technology, we can help you to find the right insurance program at a competitive price. Contact us today at (855) 889-2037 to learn more about what we can do for you.