Unique coverage for condo owners.
As a Michigan condo owner, the first step in buying the right insurance policy is to read your HOA bylaws. Depending on the bylaws and the master policy the association purchased, you’ll need to purchase the appropriate coverage to fill the gaps. A condo insurance policy, also known as an H06 policy provides coverage for your belongings, upgrades you make to the unit, as well as liability coverage.
Michigan Condo Insurance 101
Living in a condo presents a number of different risks than living in a single family home. HOA bylaws, potential assessments and sharing walls with your neighbors are just a few of the obvious differences. To protect your investment, make sure you have a properly written condo insurance policy.
While a homeowners policy provides coverage for the entire dwelling – in a condo, you’re only responsible for the studs-in. Your condo policy will provide coverage for damage to interior walls,
flooring and ceiling. Condo insurance does not provide coverage for damage due to flooding. You will need to purchase a separate flood insurance policy if you would like that coverage.
If you’ve upgraded your condo, your condo insurance will pay for repairs to restore your condo to it’s upgraded condition if properly written. If not, you may be stuck paying for the upgrades a second time.
Imagine you took your condo, turned it upside down, and shook out all of your personal belongings. Besides having a mess, you’d probably be amazed at how much stuff you have. This section of your homeowners policy provides coverage for your belongings – clothes, electronics, appliances, furniture, etc.
Bodily Injury & Property Damage
Liability is defined as any injury or property damage that arises as the result of negligence. This coverage protects you in the event that you do something, or didn’t do something you should have.
This coverage exists to reimburse guests or visitors for immediate medical expenses for an injury that occurred at your condo without regard to negligence.
Additional Living Expense
If your condo suffered serious damage making it unlivable for an extended period of time, could you afford to continue paying your mortgage while also paying for either an extended hotel stay or apartment lease? Something very few people think about until they need it- additional living expense provides you with coverage that reimburses you for the the additional costs incurred by you in the event of a covered loss. In the unfortunate event that a fire or other covered loss requires you to relocate, condo policy will step in to cover reasonable costs associated with an alternative living situation.
Everyone’s favorite question “Why does this seem so expensive?!”. While quoted prices from different carriers will vary, they’re all using similar metrics to decide how much to charge you for condo insurance. While the list below isn’t exhaustive, they’re common indicators that Michigan insurance carriers use to determine your final premium.
- The location of your home
- The Replacement Cost of Your Home
- Type and Age of Roof
- Claim History
- Policy Limits
- Gaps in Insurance History
- The accessibility by fire department, and proximity to a fire hydrant
- Discounts and Credits (Connect to Blog Post) AARP, College Degree, etc.
- Insurance Score