What Is Condo Insurance and How Is It Different From Homeowners Insurance?

If you own or are considering buying a condo in Mississippi, it’s essential to understand how condo insurance works and how it differs from homeowners insurance policies that might be purchased for single-family residences. Jarrard Insurance Inc explains each below.

What Is Condo Insurance?

Condo insurance may cover the interior of your unit, such as walls, floors, ceilings and personal belongings. It may also provide liability protection if you’re responsible for someone else’s injuries or property damage and assistance with additional living expenses if your condo cannot be lived in due to a covered incident.

A key feature of condo insurance, also known as HO-6 insurance, is that it works alongside your condo association’s master policy. The association’s policy usually covers the building’s exterior and common areas, while your individual policy can financially protect what’s inside your unit and your personal interests.

How Does Condo Insurance Differ From Homeowners Insurance?

Condo insurance differs from homeowners insurance purchased for houses and single-family residences, such as an HO-3 policy. They are distinct from each other in the following ways:

• Coverage scope—An HO-3 policy may cover the entire home structure and the land it sits on. Condo insurance generally covers only the interior of your unit and your personal property.
• Master policy coordination—Condo owners rely on the association’s master policy to cover exterior and shared spaces. Owners of single-family residences are typically responsible for insuring their entire property.
• Cost factors—Because condo insurance covers less of a structure, it may cost less than homeowners insurance. However, rates can vary based on various factors, including your location, claims history and the value of your personal assets.
• Loss assessment—Condo insurance can include loss assessment coverage, which can help pay for your share of damage to common areas or liability claims against the association.

Secure a Policy Today

Jarrard Insurance Inc can help you evaluate your needs and find suitable coverage for your condo in Mississippi. If you’re ready to review your condo insurance options or have questions about your coverage, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.