Condo Insurance in Maine
Allen/Freeman/McDonnell Agency
Condo Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
Condo insurance is a type of homeowners insurance specifically crafted for condominium units. Policies are written to insure an owned unit within a larger residential building.
Most people who own a condominium in Maine need condominium insurance. Coverage might be purchased for traditional condos, townhouses, cooperative housing projects, and other similar units.
Structural Coverage
Personal Property Coverage
Personal Liability Coverage
What is condo insurance?
Owning a condominium is similar to owning a single-family home, but it’s also different in important ways. Condominium owners in Maine need a unique insurance solution. That’s what condo insurance provides.
Condo insurance is a type of homeowners insurance specifically crafted for condominium units. Policies are written to insure an owned unit within a larger residential building.
Who in Maine should consider condominium insurance?
Most people who own a condominium in Maine need condominium insurance. Coverage might be purchased for traditional condos, townhouses, cooperative housing projects, and other similar units.
In many cases, owners aren’t just encouraged but are obligated to carry insurance. Lenders often require basic insurance to safeguard their financial investment in the unit. Associations often require insurance to ensure that owners can afford to rebuild if there’s a disaster.
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What does the HO-6 homeowners insurance policy cover?
Condominium insurance is categorized under homeowners insurance, and the insurance industry has created a labeling system for different types of homeowners policies. The system uses “HO” followed by a number.
The HO-6 code corresponds to a standard condo policy, which is often the go-to for many condominium owners. HO-6 homeowners policies can be thought of as the standard condominium policy, and the foundation condominium policy on which other coverages might be added..Some popular add-ons include:
- HO-32: Typically broadens protections
- HO-33: Typically for rented condos
- HO-35: Typically incorporates loss assessment coverage
There are more add-ons to consider.. An insurance agent who’s well-versed in condominium policies can guide owners in choosing the right protections for their unit.
What protections are offered by condominium policies to condo owners?
The precise protections provided by a condominium policy can greatly depend on the specific policy and the add-ons selected. However, most policies offer some fundamental protections:
- Structural Coverage: Might protect the actual condo unit against various causes of damage
- Personal Property Coverage: Might cover personal belongings housed within the condo
- Personal Liability Coverage: Might cover various liability lawsuits against the owner
- Loss Assessment Coverage: Might cover a special assessment resulting from an association-wide loss
What is loss assessment coverage in a condo policy?
Loss assessment coverage is a particular coverage that’s frequently in condominium insurance policies. It usually helps owners pay special assessments that the association levies to pay for covered claims.
For instance, consider a major storm that could severely damage a condo complex’s entryway, pool area, and landscaping. A major special assessment could follow if the association lacks adequate reserves and insurance coverage. Loss assessment coverage might help a unit owner cover the special assessment they’re required to pay in this situation.
Loss assessment coverage normally doesn’t help with assessments that aren’t related to a loss or lawsuit. Special assessments for capital improvements usually aren’t included in this coverage’s protections.
How much structural coverage should condo owners buy?
Structural coverage is a common feature in most homeowners policies, and it’s generally included within condominium policies too. There are a few types of structural coverage that condominium policies might offer, though:
- Bare Walls-In Coverage: Usually provides coverage only for the essential walls and systems (such as electrical and plumbing) within a condo unit.
- Single Entity Structural Coverage: Usually covers the walls, systems, and standard features initially included with a unit.
- Modified Single Entity Structural Coverage: Usually covers the walls, systems, standard features and optional upgrades within a condo unit.
As a general rule, condo owners should typically buy coverage for what their association’s policy doesn’t cover. An insurance agent who specializes in condo owner and condo association policies can assist unit owners in reviewing their association’s policies, and choosing a corresponding type of structural coverage.
How can Maine condo owners secure condo insurance for their units?
If you require condo insurance for a condominium located somewhere in Maine, reach out to the independent insurance agents at Allen Freeman McDonnell Agency. We’ll work with you to determine exactly what coverages your condominium policy should include, and then help you find th best policy for your particular unit.
