Residents who own condominium have insurance needs that are similar to owners of single-family homes, but their insurance needs are exactly the same. Condo insurance is adapted to meet the insurance needs of condominium owners in Massachusetts.
The coverages and limits that condominium owners need in a condo insurance policy are partially determined by the protections that their condominium association master policy affords. Condominium owners don’t want gaps between their association’s policy and their condo policy, but the also shouldn’t be paying for duplicate coverages. An experienced insurance agent who specializes in condo policies can help owners review their association’s master policy to determine what coverages they should look for in a condo policy.
Most people who own a condominium in Massachusetts, regardless of whether it’s a year-round residence or seasonal getaway, should insure their unit with a condominium policy. Not having a policy can leave owners dangerously exposed to risk should something happen.
In many cases, condominium owners are required to carry coverage. Both condominium bylaws and loans written on units frequently stipulate that owners must have a policy with minimum coverages in place.
Condominium insurance policies normally have several coverages that protect a variety of risks. Some of the coverages that a policy may make available as standard or optional protections include:
Structural Coverage, which might cover a unit itself
Personal Property Coverage, which might cover belongings owned by the policyholder
Personal Liability Coverage, which might cover certain liability lawsuits
Loss Assessment Coverage, which might cover special assessments related to covered claims
Loss assessment coverage normally won’t pay a special assessment that’s used to make a capital improvement on an association’s property. If a major covered disaster causes enough damage to necessitate a special assessment to pay the association's deductible, however, loss assessment coverage might pay the assessment.
How a condominium insurance policy treats valuables usually depends on the terms, conditions, exclusions and limits within its personal property coverage. Many condominium policies have specific limits for furs, jewelry, collectibles, firearms and other items of high value. Policyholders should review these limits with an experienced insurance agent so that they understand how a particular policy would or wouldn’t cover their personal valuables.
When policyholders need more coverage for valuables than a policy’s standard personal property coverage provides, they may have three options. They might be able to increase the limit for their valuables, purchase an endorsement or rider for their valuables, or find another insurance policy that has more standard protection.
Condominium policies are frequently abbreviated within the insurance industry, and the abbreviations used typically begin with “HO.” Policies with the same abbreviation tend to have similar coverages.
HO-6 is the abbreviation generally used for a standard condominium policy. This type of policy is sufficient in some situations, and it often forms the foundation of more robust policies.
Some other abbreviations that condominium owners might come across include:
HO-32, which is generally used for policies that offer more robust protections
HO-33, which is generally used when a unit is leased to a tenant
HO-35, which is generally used for loss assessment coverage
For help finding a condo policy that’ll provide the protections your condominium in Massachusetts needs, contact the independent insurance agents at Roger Keith & Sons Insurance. Our agents have helped many residents find condo insurance, and they’re ready to assist you.