Condominium insurance is similar to homeowners insurance but is designed for the specific needs of condo living. Many families choose condos because of the convenience of on-site maintenance and access to community amenities.

In this environment, the main structures of all buildings and common areas are covered by an insurance policy held by the condo association. However, a personal condo insurance policy may cover both the dwelling (structure) and your personal property inside as well as liability risks of the unit owner. You can also purchase some coverage for covered assessments given to unit owners by the association if they are caused by losses covered under your condo policy (not maintenance bills).

Condo insurance is beneficial for all condo owners as well their visitors. In fact, most mortgage companies require condo owners to purchase a policy for the duration of their loan. Condo insurance may cover damaged, lost or stolen property due to fire, theft or natural disaster. This protection could extend to interior furnishings, including walls, flooring, ceilings, appliances and fixtures.

In addition, this type of policy could cover you against liability claims. If you are found liable for a visitor’s injury, condo insurance could cover associated medical expenses and/or legal fees.

The necessary amount of condo insurance largely depends on a number of things, like the value of the condo, location, and the condo association policy and the value of your personal property and furnishings inside.  A small, 600-square-foot condo in the suburbs could be $200 a year versus a luxurious penthouse in the city overlooking Boston Common costing $2000 a year.  It also factors in the value of your possessions. By determining how much it would cost to replace your possessions, you can estimate the policy size that would be appropriate for your individual needs.

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