Definition of a Condo Insurance Policy

When you buy a condo it is like buying a house; you still need to protect your investment in the same way by providing coverage in case of emergencies. There are slight differences in the coverage of a condo versus a home, due to a condo be attached to other condos. There are other factors to consider as well, when purchasing your insurance.

A condo insurance policy is an agreement between the owner of the property and insurance company. The owner will pay a set amount each month to the insurance company. In turn, the insurance company will cover the cost of any situation stated in the policy as being covered, minus a deductible.

Situations normally covered in a policy:

• Fire


• Theft


• Smoke


• Vandalism


• Certain water damages from leaks (floods are not covered)

Condos have associations that look out for the best interest of the building. You pay dues that help support everything they do to maintain the building. One of the things your dues pay for is an insurance policy that covers structural damage. This is separate coverage because two or more owners share walls.