Condominiums, Co-ops and townhomes need to be covered by an "HO6" policy. These policies are essentially identical to standard homeowner's policies, and provide coverage for the condo, the personal belongings, loss assessment, and liability.
Many condo associations have agreements that differ in terms of what is their responsibility and what is the unit owner's – you'll need to check with the association to see where exactly their responsibility ends and yours begins.
Upgrades made to your unit (new kitchen, bath, etc) almost always are your responsibility to repair. And there are many types of claims that can occur which will result in you having to pay for the repairs to your unit even if the association considers the item (i.e. the sheetrock on the wall, the floors) to be their responsibility.
Ask your agent to help you calculate the full interior cost of your condo in order to protect yourself adequately.
The coverage of a condo / co-op/ townhome policy is as follows:
- Coverage A – Covers the interior of the condo not covered by the association
- Coverage B- Other structures – typically not relevant on this type of policy
- Coverage C – Personal property coverage – make sure you have replacement cost coverage (Some policies will lump A and C into on category)
- Coverage D – Loss of use – Money to pay extra expenses incurred to live elsewhere if your policy must pay to fix your damaged unit.
- Coverage E – Liability – Lawsuit protection for bodily injury both at home and away from home – add personal injury coverage to also provide protection against many types of civil suits.
- Coverage F – Medical payments to others – pays medical expenses if someone is hurt on your premises, Many policies will also pay for medical expenses for others that occur away from home (accidental dog bite in the park, for example).
- Loss Assessment – Pays for fees assessed by your associations for damages or claims in shared areas of the complex or building.
- Sewer and water backup – if you toilets overflow
- Worker's compensation – to pay for claims by casual workers hurt while performing a job at your location (for example, a cleaning person).
- Mold/Fungi – for coverage of mold and rot claims.