What does condo insurance cover?
Your unit-owner policy, usually called an HO-6, picks up where the association's master policy stops. On most policies that means the inside of your unit, your belongings, and your personal liability.
- Walls-in and improvements: interior walls, floors, cabinets, fixtures, and upgrades you or a past owner made, depending on what the master policy leaves to you. The kitchen the last owner remodeled may be yours to insure, not the building's.
- Personal property: furniture, clothes, electronics, and whatever is in your storage locker.
- Liability: helps if someone is hurt in your unit or you accidentally damage a neighbor's unit.
- Loss assessment: often helps pay your share when the association charges owners for a covered loss to shared areas, up to your limit.
- Loss of use: helps with living costs if a covered loss makes your unit unlivable.
What your policy pays depends on its terms, limits, and deductible.
What does the association's master policy cover?
The master policy typically covers the building's structure and common areas: the roof, hallways, lobby, and elevators. How far it reaches into your unit varies from building to building, and that's the whole question.
Chicago condos run from a converted three-flat with no property manager to a high-rise with full-time staff, and their master policies vary just as much. The table shows three common approaches.
| Master policy approach | What it often covers inside units | What it often leaves to you |
|---|---|---|
| Bare walls | Little or nothing past the unfinished walls | Drywall, floors, cabinets, fixtures, and all upgrades |
| Single entity | Original fixtures and finishes | Upgrades made after the building was finished |
| All-in | Fixtures, finishes, and many owner upgrades | Mainly belongings, liability, and loss assessment |
Scroll sideways to see the whole table.
Read your association's declaration and bylaws (the documents that created the association), and ask the board or property manager for a summary of the master policy, including its deductible. Your walls-in and loss assessment limits depend on what those documents say.
What does condo insurance usually not cover?
Most condo policies typically exclude flood, earthquake, and sewer backup, though you may be able to add coverage or buy it separately. They also typically leave out wear and tear, pests, and damage you cause on purpose.
- Earthquake and sewer backup: the Illinois Department of Insurance notes that standard home policies typically exclude both. "Sewer Back-up and Sump Pump Overflow Coverage" is an optional add-on (IDOI definitions (opens in a new tab)). A garden unit with a floor drain that backs up in a storm is the kind of place this add-on was written for.
- Flood: it's not typically included and must be bought separately (Illinois Department of Insurance (opens in a new tab)). National Flood Insurance Program coverage generally starts 30 days after purchase, and most belongings kept in a basement aren't covered (FloodSmart.gov (opens in a new tab)).
Where can I get help in Illinois or Arizona?
The Illinois Department of Insurance and the Arizona Department of Insurance and Financial Institutions answer consumer questions and take complaints; the City of Chicago handles basement flooding reports. The numbers and links:
- Water in your basement in Chicago: report it to 311 (opens in a new tab) (City of Chicago (opens in a new tab)). The Department of Water Management also has basement flooding resources (opens in a new tab).
- Illinois insurance questions: the Illinois Department of Insurance consumer hotline is 866-445-5364 (idoi.illinois.gov (opens in a new tab)).
- Arizona insurance questions: contact the Arizona Department of Insurance and Financial Institutions (opens in a new tab).
How we work on condo insurance
We read the declaration with you. Not the whole binder, just the insurance section, which tells us whether the building is bare walls, single entity, or all-in, and what the master policy deductible is. That one section sets your walls-in and loss assessment limits, and we would rather set them from the document than from a guess. If the board can't find a summary of the master policy, we'll tell you what to ask for.
Garden units get a second look at sewer backup. Units with a storage locker get a question about what's in it. We speak English and Spanish. If you have a claim, see our claims page.
What to have ready when you call
When you're ready, call us for a quote.
- Your unit address and unit number
- The insurance section of the declaration and bylaws. Your closing attorney or the management company usually has a copy.
- A summary or certificate of the master policy, including its deductible. Ask the property manager or board treasurer.
- Your property manager's or board's contact information
- A list of upgrades, like new floors or a kitchen remodel, and roughly what they cost
- Your current declarations page, if you have a policy now. The one that lists limits, not the ID card.
- Your mortgage company's name and your loan number
Common questions
Does the master policy cover my belongings?
Typically, no. Master policies usually cover the building and common areas, not owners' personal property. Your furniture, clothes, and electronics are typically covered only by your own policy.
What is loss assessment coverage?
When the association has a large loss, it may charge each owner a share, called an assessment. Loss assessment coverage often helps pay your share for a covered loss, up to your limit. Some policies also help when the charge is for the master policy's deductible.
Who pays if water from my unit leaks into a neighbor's?
It depends on the cause, the master policy, your association's rules, and your own policy. If you're responsible, the liability part of your policy may help, subject to its terms. Call us and we'll talk it through.
Does my lender require condo insurance?
Many mortgage lenders require it, and your association's bylaws may too. Check both and bring any required limits to your call.