As a condominium owner, you have special insurance needs.
Your condominium building structure and all common property are usually protected by a special policy purchased through the condominium association, but what about your personal belongings, theft losses, and personal liability protection? If you are on the ground level and your upstairs neighbor has a water leak, who will pay for your damages? If lightning strikes and your computer and tv are ruined, will you have to replace them out of pocket?
Why do I need condo insurance if my association has insurance?
Your association does not provide insurance protection for the personal belongings in your individual unit or for damages resulting from an accidental loss in which you become legally obligated.
Many assosciations do not replace windows or screened porches when damaged. If you care at all about your furnishings, including computers, televisions, etc., then you need to protect yourself with condo HO6 insurance. HO6 insurance also protects against loss from fire, internal or accidental water damage (not flooding from rain or overflowing bodies of water), lightning damage, and liability losses for accidents to visitors in your home. Theft is included if the condo is your primary residence, but not for investment or rental units.
**Note: In certain coastal areas, an HO6 policy will not include wind damage. Due to hurricane losses, wind and hail insurance is provided through the South Carolina Wind and Hail Underwriting Association and is a separate policy from your condo HO6 policy.
So what does HO6 insurance cover?
The best "rule of thumb" for condos: everybody pays for their own damage. If a toilet on the third floor leaks and does damage to the units below, everyone must pay for their own damage. The person on the third floor is not responsible for the units below.
That is why it is very important for each person to have their own HO6 Condo Insurance policy. HO6 policies are primarily designed to cover the contents of the condo. The building is covered by the HOA and the premiums are paid for out of your HOA dues.
Each HOA has different by-laws, but generally the building insurance policy should put the building back as it was when it was originally constructed.
Your HO6 policy would pay for any improvements that you have personally made to the condo.
Example: you replace the original counter tops with granite counter tops, and the building burns down. The building policy will build the building back as it was originally. Your HO6 policy would cover the difference between the old counter tops and the granite plus pay for your contents (movable items) to be replaced.
It is really difficult to prove negligence. I don't see how it could be proven with a water heater replacement
Finding the Cheapest HO6 Insurance
If you want to keep your insurance rates as low as possible on all your policies, keep all your insurance with one company! One of the biggest discounts available for your South Carolina car insurance is the Multiple Policy Discount! Be sure your car, home, and life insurance is with the same company (You don't have to live in SC!) and you'll be amazed at the lower premiums. We can show you exactly how to invest your insurance dollars the best way, and find all the discounts possible for your individual situation.
If you are renting a condo, you need Renters Insurance. See more information about this on our SC Renters Insurance page!