You don’t need just condo insurance in Georgia — you actually need two policies.
Your condominium unit shares some qualities of a traditional family home and some of apartment living. But neither homeowners insurance nor renters coverage fully addresses your unique need as a condo owner.
Like many apartments, your living space might be part of a building in which others also live. But unlike apartment life, you own your unit. You also co-own the shared space outside your unit. That’s why you need two separate affordable home insurance policies.
Confused yet? Read on, and you won’t be.
Navigating the Maze of Condo Insurance Policies
Why do I need special insurance for my condo?
Good question. It’s not really a maze of insurance products you’ve got to be concerned about, but the situation can be a bit more confusing than if you own a conventional home or rent an apartment. That’s because it takes two different policies to offer you and your family total financial protection in this unique type of space.
The Master Policy Covers Your Shared Spaces
You’ll “inherit” this when you move in. Also known as condo association insurance, the master policy will have been bought by your condo association and will already be in force by the time you buy your unit. Just like all the building’s residents, you’ll contribute toward the payment of the monthly premiums through your condo fee.
The master policy covers such shared spaces as the exterior walls, the roof, lobby, the grounds surrounding the property, and other common areas. Your condo association might file a claim on the master policy if the roof is torn up in a Georgia tornado or hurricane, a tree limb falls off and damages cars parked on the street, or fire and smoke cause damage to the lobby.
Deciphering the HO-6 Policy for Georgia Condominiums
Don’t get scared off at the prospect of having to negotiate the purchase of an HO-6. It’s really not as intimidating as it sounds. An HO-6 policy is simply Georgia condo insurance for the owners of individual units.
Consider the fire previously mentioned, the one that damages the building’s lobby. Your master policy kicks in to handle the costs of that calamity. But what if that fire only occurred in your own kitchen and caused extensive damage to those walls and major appliances, plus smoke damage throughout the rest of your unit?
That’s where your individual HO-6 or condo coverage comes into play.
Your master policy is only concerned with damage to common areas. If the smoke from your kitchen fire seeps out and ruins the carpet in the common hallway, your master policy will take action. But that coverage will do nothing to replace your kitchen appliances and damaged personal property throughout your unit from the smoke. That’s your responsibility. That’s why you buy an HO-6 policy.
This policy will cover any damage, destruction, or loss of your personal property or interior walls, windows, or other elements of your owned unit. You can file a claim for burglary, vandalism, fire, flooding due to a broken water pipe, and other unexpected calamities.
Your HO-6 goes even further. If, for instance, that unit fire leaves your condo uninhabitable for a period of a couple of months while it’s being restored, your insurer will pay for temporary housing for you and your family, up to your deductible and coverage limits.
If other building tenants sue you for their damages due to your fire (or for any other reason), your condo coverage will help pay for your legal costs. If a party guest has a bit too much to drink and trips and falls on your interior stairs, your insurer will help pay the medical costs for the injury.
The HO-6 will also cover damage to property kept in your car or at a storage unit. The main point is, your Georgia condo insurance policy covers what is solely yours and what happens in your owned unit, while your master policy covers the shared condominium spaces.
Exploring Optional Condo Insurance Add-Ons
You don’t have much control over the contents of your master policy unless you become active in your condo association and help negotiate your next contract. But you have all the control when it comes to your individual condo coverage.
You can customize it to better fit the realities of your life by adding what are called riders or endorsements to your policy. For instance, you might ask your insurer to provide an additional coverage limit for very expensive jewelry, art, or electronics.
You might also ask for flood insurance if, for instance, you’re in a flood plain and have a ground-floor apartment. A standard policy usually doesn’t cover floods from bodies of water (though it will cover the water damage from a burst interior pipe).
For another example of a rider add-on, your standard policy generally covers injuries or legal action as the result of your dog biting someone. But if you have certain breeds known for their aggressiveness, your standard policy might not cover that animal. That’s when you need to ask your agent if you can add language to your policy and pay extra to cover that pet.
The main point is that you should carefully review your condo insurance with your agent and see what is — and isn’t — covered. If you see a risk that you want addressed, find out if you can get a rider added to the policy.
After all, it never hurts to ask.