Owning a condo puts you in a unique position when it comes to insurance. While you need more coverage than a renter, you don’t require quite as much as homeowners. This can make shopping for a policy challenging as you try to make sure you’re adequately protected without paying more than necessary. To help understand your options, review these commonly asked questions.

A Condo Owner’s Guide to Insurance

How does condo insurance work?

Most condo associations have a master policy that covers damage to the structure of the buildings and all the common areas owners share. Condo insurance covers any gaps in the association’s policy. Condo owners are then covered for incidents that occur both outside and inside their residence.

What does condo insurance cover?

A standard policy will offer coverage for any damage to the interior of the unit, including the floors, walls, ceilings, fixtures, and built-in furnishings. It will also cover your personal belongings, liability and legal fees if a guest is injured inside your home, and additional living expenses if your condo became inhabitable after a loss. You may be able to buy additional coverage for valuable items as well.

How much coverage do you need? 

To determine how much coverage to purchase, first review the condo association’s master policy to check what’s covered already so you don’t overlap. Some policies will cover the appliances, plumbing, and electrical wiring in each condo, while others won’t cover anything inside the walls of a unit. Then you’ll need to consider the estimated costs of condo repairs, how much your possessions are worth, and if you’ve made any upgrades that increase the value of your unit.

How can you reduce your premium?

Most companies will offer different ways to reduce coverage rates. You may be able to lower the premium by bundling multiple policies under one insurer and installing smoke detectors, an interior sprinkler system, and security features. Your agent can tell you what discounts are available and which you’re eligible for. 

If you’re looking for quality condo insurance at a competitive rate, turn to Mutual Underwriters. Proudly serving the Hawaiian Islands from five different locations since 1958, the agency offers a wide range of options to help protect clients’ finances and assets. Call the Honolulu office at (808) 532-2888 to set up an appointment, or visit them online to learn more about their products.