Condos are considerably different from standalone properties in many ways, and one often overlooked difference is insurance. When you purchase a condo, you don't assume ownership of the building or property. As such, you're not responsible for insuring either. You will, however, still want to protect yourself in the event of catastrophe. To do so, you should start by familiarizing yourself with the basics of condo insurance. 

The HOA’s Policy 

If your condo belongs to a traditional homeowners association (HOA), the structure itself should be protected by the HOA’s insurance. This insurance can cover damage that occurs to the building’s exterior and injuries sustained in any of the common areas. Otherwise, members of the association don't have any financial protection in the event of a catastrophe.

Your HO-6 Policy 

To cover the inside of your unit—and all the personal property it contains—you must purchase your own policy. Known as an HO-6 policy, this kind of insurance can bridge the gap between what the HOA covers and what it doesn't. 

Much like traditional homeowners insurance, a personal condo insurance policy can cover both property damage and bodily injury. The property damage portion of the policy helps repair any interior damage caused by a covered event. It will also cover the cost of replacing stolen property. The bodily injury portion protects you from litigation if someone gets hurt inside the unit. Instead of having to pay for the victim’s medical bills and lost wages out of pocket, your insurer will step in and do so up to the policy’s limits. 

To purchase personal condo insurance for your latest real estate investment, turn to Grachek Insurance. Located in Kalispell, MT, this family-owned and operated agency has been serving individuals and businesses throughout Flathead Valley since 1986. As an independent agency, they help clients secure comprehensive coverage for affordable rates. To request a quote for condo insurance, reach out online or call (406) 755-4000.