Condominium Insurance

If you own a condo, certain areas of the property are typically covered by the HOA insurance policy, but how much? The interior of your home (from the walls in, including drywall and appliances) and your personal possessions are covered. If someone is injured in your private area, the HOA insurance policy won’t cover it. Every condominium insurance policy varies in what is covered, what it will payout on, and what restrictions are part of the policy. You don’t have time to read the small print, but at Frank D. Spicer Insurance Agency in Fairfax, Virginia, we do. Our local team works to find the best coverage at the lowest rates from a range of providers.

Some of the types of condominium insurance that should be in place include coverage for alterations, appliances, fixtures, and any other structures unique to your unit, as well as the property for which the association agreement holds you responsible. Your condo should be protected against losses associated with fire, smoke damage, storm damage (wind, rain, ice, snow, hail, etc.), as well as theft, vandalism, or mischief.

You are responsible for any losses to a guest or visitor due to accidental injury that occurs on your property, from slip and fall injuries to dog bites – or damage to another’s property. Should a lawsuit be filed against you to attempt to recover financial compensation after an injury or other loss, you are protected by your condo insurance policy up to the set coverage limits.

What specific types of condominium insurance coverage do you need? At Frank D. Spicer Insurance Agency, we live and work locally and are available to review your current policies, as well as your association agreement. We can help you determine the types of coverage and how much you need to put in place to protect against the risk of loss. We always search out the best prices for the highest level of coverage, and we are committed to helping local condo owners get the peace of mind they deserve.

FAQ’s:

Condo:

1). Why do I need a condo unit owners policy?

There are many reasons why owners of condos need a condo unit-owner’s policy (HO-6 policy). Coverage for the unit owners personal property, personal liability, and improvements to their units are a few of the reasons. Unit owners policies provide full & comprehensive coverage for the “interior shell” of the unit. The unit owners policy typically provides coverage for items the association will not cover.

2). I thought that part of my condo fees pay for insurance – what does that cover?

Part of the condo fees you pay to your association go to pay for the cost of the “master insurance policy.” This is the policy the association purchases to protect the interests of the association. The master policy (in most cases) provides coverage for the exterior structure of the building(s) as well as interior fixtures that were original to the building. The master policy also protects the liability interest of the association in the event of a lawsuit.

3). I’ve done some upgrades to my unit – are they covered by the association’s master policy?

Generally no. The association’s master insurance policy will only provide coverage for fixtures that were original to the building when it was built. So, if you have put in new hardwood flooring, granite countertops, new cabinets, etc. – these items will generally not be covered by the association’s master policy. Unit owners need to have a unit-owners policy to ensure the upgrades they completed are fully protected.

4). A pipe in my wall burst and flooded my unit. I need to move out and live elsewhere while my unit is being repaired – am I covered?

A condo unit owners policy provides coverage for “additional living expenses” (sometimes referred to as “loss of use” coverage. This would cover the additional costs incurred as a result of being displaced from your unit. Example – your unit is impacted by a burst pipe in the wall. You have to move out of your unit for 3 months while the repairs are made. The cost to rent an apartment (or similar unit) for 3 months would be covered under the “loss of use” section of the unit owners policy.

5). Are my personal belongings covered by the association’s master policy?

No. The only way to ensure coverage for your personal belongings is by purchasing a unit owners policy (HO-6 policy).

6). If I accidentally start a fire and it damages other units in my building – am I covered?

This is a classic “personal liability” type scenario. If negligence can be shown, you may be held liable for the damage caused by the fire. A condo unit owners policy will typically contain personal liability coverage which may protect you in an event of this nature. This is a very important coverage and we will work with you to make sure you have adequate protection in place.

7). I have a unit that I rent to a tenant – do I still need a unit owners policy?

Yes. Tenant-occupied units need to be covered by a unit-owners policy. At Spicer Insurance, we have a policy specifically designed for tenant-occupied condo units. How is this policy different from a traditional (owner-occupied) unit owners policy? – it provides coverage for rental income.

Example: A fire displaces your tenant from the unit for a period of six (6) months. As a result, the tenant has stopped paying rent and you have lost six (6) months of rental income. At Spicer Insurance – our unit owners (landlord) policy will provide full rental income coverage during the tenant’s displacement – up to twelve (12) months.

8). How do I know if I’m responsible for something or if the association will be responsible?

Generally, the bylaws of the association will outline when the association is responsible and when the unit owner is responsible. Every association is different and the bylaws should be read over carefully. At Spicer Insurance we are very familiar with local associations and we know exactly what to look for. If you provide us a copy of your association’s bylaws we will look them over and customize a policy that’s right for you.