What is condominium or co-op insurance?

Insurance for condo or co-op owners

Condominium or co-op insurance provides homeowners with financial protection against the loss of the part of the structure owned and personal possessions, and lawsuits against the homeowner.

Like a standard homeowners policy, condominium owners that have mortgages on their property are required to have personal insurance, and in addition must have proof of a master policy that covers everyone in the association for liability and physical damage in the common areas of the property.

Dwelling coverage for condominiums and co-ops is the same four types of insurance coverage for homeowners who own the entire structure:

• 1) The physical structure – This insurance will pay to repair or rebuild the condominium or co-op, the portion of the building owned by the homeowner, if it’s damaged by a disaster covered in the policy, but will not pay to repair or rebuild if the damage is caused by normal wear and tear.
• 2) Personal belongings – This insurance will pay for items lost as a result of a covered disaster, like a fire, and for theft. Off-premises coverage, which is included with most homeowners insurance policies, means that homeowners’ belongings are covered for these risks anywhere in the world. Expensive items like fur or jewelry may require additional insurance to cover their full value.
• 3) Liability – This insurance will cover injuries or property damage homeowners, or their children or pets, cause other people, anywhere in the world, and includes court costs and damages.
• 4) Temporary living expenses – This insurance pays for costs of living away from home, for things like staying in a hotel or dining in restaurants, if the condo or co-op is temporarily unlivable because of an insured disaster.

Damages aren’t covered if they’re caused by events not included in the insurance policy. A typical homeowner’s policy doesn’t cover damages caused by earthquakes, floods, war, or nuclear accidents.