Cover what your association doesn’t.
Condo insurance coverage is for people who own what is classified as a condo. The condos can be resided in by the insured or rented out either yearly or daily. Most condominiums have the Condo or HO-6 policy purchased by the insured and a Master Policy purchased by the condo association. Since every association is different it is important to determine what you as a condo owner are responsible for in the event of a loss.
Most condo insurance policies have a deductible that will have to be met before the policy can afford coverage. Florida is unique since most policies carry a separate Hurricane deductible or in some cases a Wind and Hail deductible. The Hurricane or Wind/Hail deductible is usually based on a percentage of the dwelling value on the policy, like 2% or it can be a flat dollar amount. The all other peril deductible applies for all other losses covered by the policy and is usually a flat dollar amount such as $1000. A limited number of policies provide Sinkhole coverage and can be either based on your all other peril deductible or a percentage of your interior structure value on the policy like the hurricane deductible.
The coverage you select for both the condo and personal property should be how much it would cost to replace all your personal belongings and repairing the condo interior* in the event it was all destroyed. Some carriers may have a minimum amount of coverage for the condo interior you must purchase based on the square feet of the condo, such as $50 per square foot.
Condominium or Coverage A
Insures permanently attached items on the interior of the condo.
Examples: ceiling fans, cabinets, lighting fixtures, and floor coverings.
Personal Property or Coverage C
Coverage for your personal possessions in the event of loss or damage.
Examples: Furniture, clothing, linens and dishes
Additional Living Expenses or Coverage D
Pays necessary living expenses while your home is being repaired.
Example: Hotel costs if your home is uninhabitable due to a covered loss while being repaired
Personal Liability or Coverage E
Coverage for claims filed against you as a result of accidental injuries to others and/or unintended property damage.
Example: You accidentally hit your friend with a golf ball on a sweet drive.
Medical Payments or Coverage F
Pays for actual medical expenses including accidental injuries to others.
Example: Your friend falls down not due to your negligence in your home.
*Review your by-laws as to the specifics of what you may be responsible for repairing/replacing.