Living in a high-rise condo offers incredible convenience and a vibrant urban lifestyle. But when it comes to insurance, the "set it and forget it" approach can leave you seriously exposed. Many condo owners assume their homeowners association (HOA) insurance master policy covers everything, but that's a mistake that could cost you thousands of dollars.
The truth is, insuring a high-rise condo is a two-part process. Your HOA has a master policy, and you, the unit owner, need your own individual policy. Understanding what each covers is the key to protecting your home and everything in it.
Think of your HOA master policy as the "outside-in" coverage. It's the blanket policy for the entire building and community. It typically covers:
But what happens inside your specific unit? That's where your personal HO6 policy comes in.
An HO6 policy, also known as unit-owner's insurance, is your "inside-out" coverage. It's designed to protect the parts of your home and your belongings that the master policy doesn't.
Your individual high-rise condo insurance policy is your safety net, covering the three most critical areas of risk:
Even with both policies in place, there can be a dangerous gap in coverage. Many master policies have a very high deductible, sometimes tens of thousands of dollars. If a major disaster like a fire causes damage to a common area, the HOA may split the deductible among all the unit owners. This is called a loss assessment.
For example, if the deductible is $50,000 and there are 100 units, you could be suddenly on the hook for a $500 bill. Your HO6 policy, however, can include a "loss assessment coverage" endorsement that will pay your portion of that assessment, protecting you from a surprise expense.
An HOA master policy covers the building's structure and common areas, while an HO6 policy covers the inside of your individual unit, your personal belongings, and your personal liability. They are designed to work together to provide complete coverage.
While not always legally required, your mortgage lender will almost certainly require it. More importantly, it is a non-negotiable part of a smart financial plan for any condo owner. Without it, you are personally liable for damage to your unit and any accidents that happen inside.
Yes, absolutely. We specialize in helping high-rise condo owners navigate this exact issue. We will review your HOA's master policy and help you find the right personal HO6 policy to fill in any gaps. Our goal is to ensure you have the peace of mind that comes from knowing you are fully protected.
We can also help you with life insurance to ensure your family's financial future is secure. Contact us today for a free consultation.
Contact Majdas Touch Insurance today for expert advice on any potential coverage gaps based on the season, and find the right solutions for your unique needs. We're here to help you understand all your insurance needs, from your pets to your financial future with life insurance policies.
We're here to make securing your insurance straightforward.
