Condo Insurance

Are you a Utah condominium owner or involved in a condo association? There are many types of homeowners insurance policies for different types of homes. Having the correct type of condo insurance for your condo or townhome is important and something that is often overlooked. A condo insurance policy not the same as a homeowners’ insurance policy.

HO-6 insurance (or condo insurance) is entirely different from a traditional single family home insurance policy. If you want to cover your personal property, liability, and the parts of the condominium unit that are your responsibility, you need a high-quality Utah HO-6 insurance policy to keep you protected.

If you don’t already have a unique HO-6 insurance policy for your Utah condo, now is the time to get one. But before you go any further, it’s smart to do your homework and familiarize yourself with all aspects of condo insurance so you’ll know exactly what you’re getting coverage for and how it works.

We’ve created this guide to help you learn about HO-6 insurance and all your options when it comes to taking out a policy. Here are answers to some of the most frequently asked questions regarding Utah condo insurance!

What does an HO6 condo policy cover?

If you’re an individual condo owner, then you’ll need to get coverage for your personal property on-site. In Utah, this is called HO-6 Insurance.

There is a wide range of options for HO6 condo insurance in Utah, including:

• Personal liability
• Special assessments
• Master policy deductible
• Loss of use
• Personal property
• Medical payments

How much is hazard insurance on a condo?

While hazard and condo insurance in Utah aren’t the same, most condo policies will include protection against hazards and named perils. Here are just some perils your provider should cover:

• Accidental discharge of steam or water
• Explosions
• Falling objects
• Fire and lightning
• Smoke
• Theft
• Weight of ice, sleet, or snow
• Vandalism
• Wind and hail

That being said, some perils will be excluded from a typical Utah condo insurance policy. In many cases, this includes perils, such as:

• Sewer backups
• Earthquakes
• Floods

Fortunately, Utah isn’t a state where earthquakes and floods are a huge risk. However, if you’re hoping to get coverage on these items, know that most HO-6 providers will not include these perils. You’ll need to get more coverage in addition to your condo owners insurance.

Factors that affect the cost of Condo Insurance

Overall, the cost of condo insurance in Utah varies greatly, depending on the following factors:

• Where you specifically live within the state
• How comprehensive your condo’s HOA coverage is
• How much protection you require from liability

Your provider will take into consideration what the cost is to replace items in the unit. They’ll also consider what level of coverage you want to have as the owner.

Deductible vs Premium

If you’re aiming for a lower deductible, you’ll likely face a higher monthly premium for your policy. On the other hand, higher deductibles can create a lower monthly payment.

If you have many high-ticket items in your home, like jewelry and designer furniture, your standard policy may be higher than in homes with less valuable items inside.

Costs of an HO6 Policy

On the cheaper end of Utah HO6 insurance, you could get out paying just $12 a month, which would be on the low end of the spectrum.

On the other hand, if you have a bare walls master policy with tons of assets that need protection, children, and dogs, you can expect your policy to be higher.

In Utah, a personal policy typically costs somewhere between $150-600 each year, depending on your unique circumstances.

If you look at the rate analysis for 2020, the average countrywide premium is $625 per year. In Utah, you can expect $398 annually for the same level of coverage.

This is great news for you if you’re a Utah condo owner!

 

What kind of insurance do you need for a condo?

If you want to get set up with a full suite of Utah condo insurance, you’ll want to get HO6 insurance in Utah, at least. Remember that you can’t get a standard homeowners’ policy, as you don’t own a home that a homeowner’s policy is designed for.

Rather, you’ll need a condo owners’ insurance policy that covers just the portion of the property that is yours.

Be sure that the coverage option you choose takes into account the perils you’re most concerned about. They typically cover things like medical payments, liability, and personal belongings.

For more information about the specific policies, you should be looking for, reach out to our condo insurance team.

Does condo insurance cover water leaks?

For the most part, you can rely on a Utah condo policy to protect you from water damage caused by water leaks, damage to your plumbing, or damage to your HVAC systems.

As long as you have a thorough Utah HO6 insurance policy, you should be covered.

The only thing you need to know is that this coverage only applies in the case of an accident. The water damage can’t have occurred as a result of natural wear and tear, or neglect, of the property.

Additionally, water damage caused by an outside source (flooding) is not going to be covered. You will need a flood insurance policy if you need coverage from water damage from an outside source.

What are the condo insurance walls?

The walls of a condo are where coverage responsibility can change from the unit owner to the condominium association. Common phrases used are “walls in” or “studs in” coverage. This means that your individual unit coverage begins from the wall inward.

HO6 Insurance is commonly referred to as “Walls In” coverage. The Walls In policy works in tandem with the HOA master policy for the whole condominium associations to create a more thorough coverage of condo insurance.

Should I get condo insurance?

HOA laws provide coverage for most construction elements, including plumbing, fixtures, and wiring on the HOA Master insurance policy.

Since this coverage is already given, many condo owners in Utah question whether they really need HO6 insurance in Utah.

To determine if you should get this coverage, first ask yourself if you still have a mortgage. If so, that’s answered for you. You may be required to hold condo insurance in Utah, as banks want to know that their investment is secure if an accident occurs.

So, what if you own your condo outright? or your mortgage company does not require it? Do you still need to get condo insurance for your property?

Think about it: countless disasters could occur at any moment that would leave you in a bad spot if you aren’t insured at all. If a fire goes off in your unit or you injure yourself badly in the home, you would be on your own to deal with the effects without a personal policy.

While you may save a small amount monthly if you don’t have Utah condo insurance, you may end up paying way more in the case of an emergency.

For this reason, we highly recommend getting a Utah HO6 insurance policy.

Is condo insurance more expensive than house insurance?

Many people wonder if condo insurance costs more than home insurance since the property shares common walls and is not fully separated from other units.

Typically, condo insurance in Utah will be much lower than insurance for a single-family house. Even though the property is different, the rates are still lower because a personal HO-6 condo policy does not cover a majority of the structure. There is an HOA master policy on top of the individual owners’ policies that protect the condominium structure.

Additionally, most condos may be smaller than homes and have less property that needs to be insured through condo owners’ insurance.

What is loss assessment coverage?

Loss assessment coverage is part of the Utah HO6 insurance policy that adds additional coverage to the HOA policy. This coverage on your condo owners insurance protects the condo owners when the whole of the building or the common areas of the building are involved in a claim.

Your HOA has the ability to assess certain losses to individual unit owners. These costs can be very expensive.

Loss assessment coverage will cover certain losses that are assessed by your condo homeowners’ association.

What’s the difference between homeowners’ insurance and condo insurance?

Condo Insurance, known as HO-6 Insurance, is quite similar to a typical Home Insurance policy but it has a few key differences.

While condo policies won’t offer coverage for the dwelling structure’s exterior, it’s still usually covered by the master policy held by the homeowner’s association, or in this case, the condo owner’s association.

Xdream Insurance works with multiple insurance carriers to offer the best Condo Insurance for Utah condo owners.

If you’re looking to find the best policy at a premium that fits your budget, we’re happy to connect you with one of our multiple insurance carriers that offer different levels of Utah condo insurance.

What is covered by condo insurance?

Primary Dwelling

Dwelling Coverage on Personal Condo insurance in Utah covers damage sustained to any of your condo’s basic interior elements.

The HOA provides a master policy that covers the primary structure and a majority of the dwelling coverage. However, you can still (and should) purchase some dwelling coverage on your personal HO-6 policy.

Before you get your own condo policy, be sure you’re familiar with your HOA’s master policy so you can craft the best policy without double coverage or leaving something uncovered.

Personal Property

This is an essential part of any good policy, as most HOA master policies won’t cover damage to or loss of any personal items. Things like jewelry, furniture, clothing, computers, and more will all fall on you. In the case of damage or even theft, your personal property will be covered.

Loss of Use

If you become unable to live in the property because of some major damage sustained to the condo building, you’ll also be covered for loss of use while the building is being repaired. Your policy will protect you from paying the costs incurred by staying at a hotel or living somewhere else while the building is out of order. There is also coverage for additional living expenses like an increased food bill from having to eat out more often vs preparing your food at home.

Personal Liability Coverage

You’ll be protected if someone injures themselves on the property and decides to sue. It will also cover any of their medical bills and allow you to replace any of their damaged items.

Medical Payments

If you or someone else is injured on-site, your policy will help cover medical bills.

Loss Assessment

As mentioned previously, loss assessment helps pay for certain losses that are assessed by the homeowners association.

What is not covered by condo insurance?

Utah condo insurance does not cover everything. It usually will not cover ‘acts of God’ like floods, earthquakes, nuclear hazards, damage from pests, natural wear and tear, and sewer backups.

It also won’t cover any intentional injuries to others. They must be accidental.

What does HOA master insurance cover?

An HOA master insurance policy for homeowner associations is different from an HO6 policy for individual unit owners. It offers coverage for the entire condominium complex. Your master policy may include the following coverage:

• Protection of shared buildings and common areas, like rec rooms, event spaces, pools, entry rooms, and more
• Structure of the condo units

To learn more, ask your condo association for details about their master policy.

What kind of insurance does an HOA need?

A homeowners association does not need HO-6 insurance as well. That’s for the individual owners of the condos. Your HOA needs to have a comprehensive master policy.

Get Condo Insurance in Utah That Meets Your Needs

If you’re going to get condo insurance in Utah, you’ll want to make sure you take the time to research all of your options to find the best provider for you. You’ll want to make sure you’re working with a company that offers the policy you need to fully enjoy your condo without worrying about coverage.

At Xdream Insurance, we’re happy to get to know your property and set you up with the best policy for your condo. Get in touch with one of our experts to get a quote and connect with one of our many partnered providers! We can answer your questions and help you feel safer in your condo!

 

Additional Questions about Condo Insurance

 

How does condo insurance work?

HO-6 Condo Insurance is homeowners insurance for condo and townhome owners.

Similar to a traditional homeowners insurance policy, an HO-6 policy provides coverage for your personal property, loss of use, liability coverage, and medical expense coverage. There is also limited dwelling coverage for your condo unit. The primary dwelling coverage is provided by your HOA master policy.

Many HO-6 Condo insurance policies also provide coverage for loss assessments as well as other important endorsements.

Who has the cheapest condo insurance?

You will find the cheapest condo insurance by working with an independent insurance advisor.

All insurance companies offer different rates for different risks. Factors such as location, structure type, coverage selection, and personal and household information can affect the cost of your insurance coverage.

An independent insurance advisor can shop with multiple insurance companies to find you the best value, as well as help, advise you on the property coverage you need.

Is insurance less expensive for condo insurance?

Insurance rates for Condos and townhouses are generally much lower than homeowners insurance prices for single-family dwellings. This is because the condo master policy will cover damage to all items in the building, including the roof, walls, and common areas.

Condo and townhouse homeowners’ policies typically cover more than just the structure of the property. They also cover your personal possessions inside the condo or townhouse, such as furniture, appliances, and clothing.

What kind of condo insurance do I need?

If you own an individual condo or townhouse, you need to purchase an individual HO-6 condo insurance policy.

This policy is specifically designed for condo and townhouse unit owners.

Your individual HO-6 condo insurance policy will provide coverage for your personal property, loss of use, liability, and medical expense, as well as additional coverage such as loss assessment.

You should also verify that your HOA has sufficient coverage on their master insurance policy to meet the needs of the homeowners association.

How much dwelling insurance do I need for a condo policy?

You should purchase enough dwelling coverage to meet your HOA master policy deductible, and maybe more depending on your homeowner’s association.

Many condo insurance policies will provide coverage to meet your HOA master policy deductible in the dwelling coverage of your HO-6 Condo Insurance policy if there is a claim that includes damage to multiple units.

In addition, you should consider adding additional dwelling coverage to cover smaller claims to the dwelling structure. This could prevent additional claims from being filed against the master policy, which could ultimately help keep prices down.

Check with your insurance advisor to see if this coverage is offered on your condo insurance policy.

How much should you insurance your condo for?

The amount of insurance you should purchase for your condo will depend on what coverages and limits are provided by your HOA master insurance policy.  You can request a copy of your HOA master insurance policy from your homeowners’ association.

You should purchase enough dwelling coverage to meet or exceed the deductible amount listed on the HOA master policy.

You should purchase enough Personal Property coverage to adequately protect your personal items, such as furniture, clothing, computers and electronics, kitchen and household items.

Additional coverage may be appropriate depending on your individual situation.

You should also verify with or HOA if they require certain minimum coverages on your individual HO-6 Condo Policy.

To speak with a knowledgeable insurance advisor about great coverage for your condo or townhouse, call Inside Insurance at 801-965-9043

Is condo insurance necessary?

Unlike homeowners, condo dwellers don’t own the building they live in or the land it sits on. Your master policy will cover the condo building and common areas, but you’ll need to put together a condo insurance policy to protect your unit and personal belongings inside.

Although it may not be required by your lender or your homeowners’ association, purchasing your own individual condo insurance policy is a smart financial decision to make.

Thanks to the ever-changing housing market, condo insurance is a very important part of anyone’s portfolio.

Should I get condo Insurance?

If you own a condo or townhouse, you absolutely should purchase a condo insurance policy.

Even if it is not required by your lender, you still 100% highly recommend you purchase condo insurance for your unit.

Your condo insurance policy will provide you coverage for your Personal Property against theft, vandalism, fire, smoke damage, and many other perils.

You will also receive liability coverage which will help protect and defend you if you’re ever sued by someone who is injured or hurt on your property.

Does Condo Insurance coverage water leaks?

The damage needs to be sudden and accidental, like a burst pipe.

Damage caused by slow water leaks over time will typically not be covered. Flooding from an outside source will typically not be covered.

Condo owners are responsible for insuring their own unit. If a water leak causes damage, it is the responsibility of the condo owner, not the HOA.

Is condo insurance more expensive than house insurance?

Condo Insurance is typically less expensive than a traditional homeowners insurance policy.

A condo insurance policy offers similar coverage as a traditional homeowners policy for Personal Property, Loss of Use, Liability and Medical Expense coverage.

You will typically have significantly less coverage for the dwelling because the dwelling coverage for a condo is provided by the HOA master insurance policy.

Therefore, you end up paying less for an HO-6 condo insurance policy than you do for a traditional HO-3 homeowners policy.

What is HOA insurance?

HOA Insurance typically refers to the Master HOA policy. Your HOA is responsible for carrying a master insurance policy to insure the common areas of your condominium development.

The HOA master policy provides protection for damages or injuries that occur in the “shared spaces” (i.e., hallways, meeting rooms, pool decks, etc.) of your community.

A portion of the cost for a master policy is usually included in your HOA fees.

Generally, the HOA master policy does not provide coverage for damage to the inside of individual condo units.

Is condo insurance required?

If you have a mortgage on your condo, you will typically be required to purchase an HO-6 condo insurance policy. If you do not have a mortgage, you are not required to have an HO6 condo policy; however, we highly recommend it.

Even if your condo association has no coverage requirements, we still highly encourage you to purchase coverage for your unit. It is the best money you’ll ever spend on your condo.

The home is often one of the most important and valuable assets a person owns—not to mention something many people spend years working to build up.

Make sure you insure your property with an appropriate HO-6 Condo Insurance Policy.

What does an HO-6 condo policy cover?

An HO-6 insurance policy is homeowners insurance for condo and townhome owners.

An HO-6 policy will provide similar coverage as a traditional homeowners insurance policy.

You will have coverage for standard perils such as fire, windstorm, explosion, theft, vandalism, smoke damage, and riot or civil commotion. Each condo policy can vary in additional coverage.

In addition, your condo policy will cover loss of use, provide coverage for your personal property, and offer liability coverage. Additional coverage such as Loss Assessment coverage is also available.

What is and HO-6 condo insurance polidy?

An HO-6 condo insurance policy is a type of homeowners insurance designed specifically for condos and townhomes where there is a Master HOA policy in place.

HO-6 refers to the insurance form the policy uses to provide coverage. It is a homeowners 6 form, which is specifically designed to provide coverage on condos and townhomes.

The HO-6 condo policy is purchased by the condo unit owner and provides some dwelling coverage, coverage for personal property, and liability coverage.

Every condo or townhome owner should have their own HO6 insurance policy, regardless of what is covered by the HOA master policy.

How much is hazard insurance on a condo policy?

The cost of hazard insurance or home insurance for condo will vary depending on the coverages selected and the amount of insurance purchased. The endorsements you select to enhance your condo home insurance will also play a role in determining the price you will pay.

On average, we see clients paying close to $20 per month for their HO-6 condo insurance policy.

We always recommend purchasing enough dwelling coverage to meet or exceed your condo HOA’s master policy deductible.  This is typically $25,000 but can vary from one condominium association to another.

We also recommend that you include the Loss Assessment endorsement on your Condo HO-6 insurance policy. This will provide you coverage for losses assessed by the homeowners association.

Condo Insurance  can be purchased for as low as $13 per month for lower personal property and liability coverage and can be as high as $50 per month, or higher, depending on the amount of coverage selected.

Because each individual or family, and each condo association is different, we advise working with an insurance professional to help you determine the amount of dwelling coverage, personal property coverage, and liability coverage needed for your specific needs.