A condo is essentially an apartment that you own. Because of the unique nature of a condo — you own the unit inside a building but not the building itself — condo insurance policies work a little bit differently than homeowners insurance policies.
What is it?
A condo policy is a type of property and casualty insurance that protects your belongings in your condo, and, depending on your policy, might also cover some of the fixed items, such as appliances, light fixtures, etc.
Who is it for?
A condo policy is for a person who lives in a condo unit that he or she owns. Someone living in a rented condo or someone who owns a condo but rents it out to someone else would carry different insurance.
How does it work?
Condo policies work like most other types of property and casualty insurance. If you have a claim, you must call your insurer and have an adjuster come look at the damage. Once a covered claim has been established, your insurer will make a settlement offer. If you have lost the use of your condo unit because of damage, your policy will cover your living expenses until you can move back in.
Different types of coverage
There are essentially two types of condo insurance, and which type you need depends on what type of policy the building owner or condo owners association carries. If your building owner has an “all-in” policy, it means it covers fixed things in your condo such as walls, floors and appliances, and you only need to carry coverage for your belongings. If the owner carries “bare walls” coverage, then you must have insurance that covers those fixed items as well as your personal possessions. You should check with the building owner to ascertain which type of policy is in place.