No matter what type of dwelling you live in whether it be a house, townhome, condominium, or apartment, you want to make sure that your property and belongings are protected adequately in the case of damage or theft. This is why, at Keystone Insurance of Utah, we consider it very prudent to consider a separate condo insurance policy (known as HO6 insurance) on top of your HOA’s master policy.
Condo insurance is not the same as homeowner’s insurance because people who own condominiums don’t own the building their unit resides in or the land it sits on. Therefore, their insurance needs are a little different than a typical homeowner’s. Condo owners belong to a Home Owner Association (HOA) that will typically hold a policy to cover the general insurance needs of the building. They do not typically cover personal insurance matters pertaining to the owner’s actual unit, such as theft, property damage, or liability in the case of an accident. This is where HO6 insurance comes into play.
The HOA laws in Utah provide condominium owners coverage for all construction elements of their unit including items such as wiring, plumbing, and fixtures, even those that have been remodeled by the homeowner. Because of this, some condo owners in Utah might question if they need extra coverage in a way or a comprehensive condo insurance policy.
If you currently have a mortgage for your condo this question will already be answered for you. Banks require owners to have adequate insurance policies in place to make sure that their investments are kept secure in the case of an accident.
But what if you own your condominium outright? Is condo insurance necessary?
There are many situations you could end up in that would be disastrous to deal with without insurance. A fire, burglary, or someone getting injured in your home, just to name a few. Reaching out to a licensed Bear River Mutual insurance agent near you to help you secure a personal condominium policy, known as an HO-6 policy, is the best way to protect yourself and your belongings in these types of cases in the state of Utah. The price of condo insurance is relatively inexpensive when you consider the out-of-pocket expenses and the toll on your mental health dealing with such situations would be without adequate insurance.
There are a number of items that will be covered in a typical condo insurance policy:
As was mentioned the HOA laws in Utah provide coverage for damage sustained to any of the interior elements of your condominium that have been constructed, but there can be some flexibility within the definitions here. It is important to have an understanding of your HOA’s master policy to know exactly what they cover. This will allow you to better craft your condo insurance policy when speaking with a licensed Utah insurance agent.
This element is incredibly important as HOA policies will not provide insurance coverage for your personal belongings. Items such as furniture, televisions, computers, jewelry, clothing, and more. In the event that you suffer damage or theft, you will be covered for the cash value of these items.
A personal condo insurance policy will protect you against being sued if someone is injured while in your condominium residence. It will also help to cover your visitor’s medical bills should they incur them, or allow for you to replace your visitor’s personal belongings should they get damaged.
If your condo sustains some sort of major damage due to a fire, earthquake, or another negative life event, and you are unable to stay in the condo whether during repairs or indefinitely, your condo insurance policy will help to cover the costs incurred from living elsewhere. For example, a hotel bill.
Any HOA master policy will have an ultimate cap on the limit that they are able to pay for damage sustained to the condo building or grounds. If this limit is reached condo owners could be asked to contribute funds to make up the difference. Your condo insurance policy would protect against you having to pay these amounts out of pocket.
Typically a personal condominium insurance policy will cost between $100-$400 a year, depending on a number of factors including; the location of the condo, your HOA’s insurance coverage, and the amount of coverage you are looking for.
It is important to speak with a reputable insurance agent like that at Keystone Insurance or another qualified insurance agency within the state of Utah. They will be able to assess your particular insurance needs and make sure that you end up with an HO6 policy that provides you with maximum coverage at the best rates available.
Here at Keystone insurance in Provo, UT, we offer a wide range of insurance services from leading providers including Safeco Insurance, Bear River Mutual, Progressive, and several others. Contact us today for your free condo insurance quote, or fill out one of our online forms.
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