Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Condominium Insurance Coverage
While your condo association’s insurance usually includes protection for most of the structure of your condo, their coverage doesn’t extend to your belongings. In addition, some condo association policies may not cover the entire structure. This is where we step in with affordable condo insurance options to get you back on your feet, should the unexpected happen.
What’s Covered Under Condo Insurance?
Condo insurance helps to protect your valuables, like furniture and electronics, should they be damaged in a covered incident, as well as helping to protect your finances against lawsuits from someone injuring themselves in your unit. It covers the things most condo association insurance policies don’t, helping you protect what matters most in your condominium.
Is Condo Insurance Necessary?
If you already have insurance with your condo association, you may be left thinking, “Do I really need condo unit-owners insurance?” While your condo association’s insurance coverage can help protect things related to the building itself and any external damages that occur, it does not protect what’s inside your condo unit itself, other than its structure. To protect the value of your belongings and help with repairs in certain cases, condo insurance is a necessity for many condo owners.
Property Protection for Your Condo
Your clothing, furniture, electronics, appliances and more — property coverage protects your unit and possessions against damage or loss caused by the following:
Hazards and Events Causing Damage to Your Condo
- Fire
- Theft
- Water damage from plumbing, heating or a cooling system**
- Power surges to electronics and appliances you own
Example: If a fire occurred in your building and damaged your personal property, your condo association would be responsible for the damage to the structure of your unit, but not for replacing any of your belongings.
Temporary Living Expenses
- Additional living expense
- Fair rental value (purchased separately)
Example: If your condo is damaged by a fire and you can’t live in it during repairs, the temporary living expense coverage on your condo insurance policy helps cover the additional cost of hotel and other living expenses, like food.
Coverage for Your Condo Unit
Condo associations are typically responsible for insuring common areas, such as the building exterior. But as a condo owner, you may be responsible for items such as flooring, cabinetry, built-ins and similar features of your home considered to be a permanent part of your condo unit.
Have you made any upgrades to your unit, such as a kitchen remodel or bathroom upgrades? Keep in mind, in the event of a loss, your condo association is only responsible for replacing the property it’s required by the condo bylaws to insure, which may not include any expensive upgrades you’ve made. So if there’s a fire in your condo, it’d be your condo insurance that would replace your personal property and the additions you’ve made to the property.
Your agent can help you determine what you’re responsible for under the bylaws of your condo association and how much coverage you should have.
Example: If a pipe burst and damaged the wooden floor you just put in, your condo association might pay to fix the pipe (depending on what caused the burst), but they won’t pay for the damage to your floor — that’s where your condo insurance would step in.
Condo Liability Protection
Accidents happen and, as a condo owner, you can be held liable for injuries to visitors that occur in your home. A condo policy helps provide financial protection for covered liability claims and lawsuits brought by others for accidental bodily injury or damage to their property that are caused by you, your children or pets.
Liability protection can also provide medical payments coverage — regardless of your legal responsibility — when an accident involves bodily injury to others.
For example: If a friend is visiting and they fall on your wet floor and break their leg, resulting in medical bills and lost wages because they can’t work, condo liability coverage helps cover the cost.
Other Covered Losses
The property protection for your condo will also cover damages from the following:
- Building collapse
- Credit/debit card, checks, forgery and counterfeit money
- Debris removal
- Emergency removal of property
- Fire department service charge (not available in AZ)
- Fungi (mold) or bacteria
- Inflation protection
- Loss assessments
- Ordinance or law
- Trees, shrubs, plants and lawns
Additional Condo Insurance Coverage
You’ve made your condo uniquely yours. That’s why we provide special add-on coverage options. By building a policy just for you, our agents can better protect the dreams you’re pursuing.
Property Coverage for Your Possessions
We protect your favorite possessions with next level protection for cherished items like wedding rings, fine art, heirlooms and equipment. Your personal property coverage has a limit on the amount of coverage for items like these, so to fully protect your important possessions, you can itemize your personal property by increasing the policy limits. Not only will your coverage amount be higher, but you’ll be covered for a greater number of risks, like accidentally losing your jewelry.
Sump Pump Failure & Water Backup Coverage
A sump pump is designed to remove excess water that accumulates around your home’s foundation. If your condo has a basement and the system ever fails or the power goes out, water overflow may occur. And you won’t be covered — unless you have sump pump over flow coverage.
Additional Liability Protection
You’ll also benefit from add-on liability coverage. Some common additional liability coverages include home day care insurance, small home business coverage, additional premises coverage and personal injury protection — all coverages that provide an extra layer of protection.
Coverage for Hidden Water Damage
A standard condo policy normally doesn’t protect you from many types of water damage — including hidden water leaks. Adding Hidden Water Damage coverage will provide a wider breadth of protection for water damage that sneaks up and causes expensive damage to your home.
Save for the Unexpected With Diminishing Deductible Coverage
When you have a condo insurance claim, you’ll have to pay a deductible before your insurance covers the costs of the repairs or replacement costs. At American Family Insurance, we know that a deductible isn’t always the easiest thing to pay after an unexpected event. But with our Diminishing Deductible, we hope to ease that burden by offering a way to reduce your deductible amount. Here’s how it works:
Earn Credit Immediately
We’ll credit your deductible $100* day one. Let’s say you have a $1,000 deductible. Good news — it just dropped to $900.
Watch Your Deductible Diminish
Your deductible will continue to reduce each year at policy renewal, up to your policy’s maximum limit, as long as you maintain your policy with us.
Savings When You Need It
If you have a claim, you’ll pay a reduced deductible amount thanks to your Diminishing Deductible coverage. Your deductible then resets, so you’ll go right back to earning a reduced deductible amount.
Learn more about Diminishing Deductible coverage >
How Much Condo Insurance Do I Need?
You should have enough condo insurance to cover the value of your belongings and help pay for any damages to parts of your unit not considered part of its structure. You can calculate this by taking inventory of your possessions and their value using receipts, photographs and even video of your unit for proof. What would it cost to replace these items?
You should also think about liability coverage and how much you might need to pay should someone be injured in your unit. Another way to supplement your condo insurance liability coverage is with umbrella insurance, which will pay your legal fees and can help pay any settlement costs should you be sued and found at-fault in court.
We're dedicated to supporting you as you pursue your dreams. That’s why we’re always finding new ways to help you save money to put towards your passion.
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Learn More About Condo Insurance & Get a Quote
Our experts will help you identify what coverages are right for you and your condo. Get in touch with your American Family Insurance agent today.
*Maximum limit of $500 for renter insurance, condo insurance and manufactured home insurance.