Your Complete FAQ Guide to Condo Insurance in Denver

Thursday, 25 November 2021 11:41

Just like any other home, owning a condominium comes with plenty of responsibilities. You'll need to properly maintain the property throughout your stay and you'll need to keep your home properly insured as well. That means you'll need to purchase condo insurance in Denver. But, why do you need a policy? How much coverage do you need? And what exactly is covered by your policy?

Today our insurance agents will answer the top FAQs regarding condo insurance. And if you have any remaining questions at the end, just give us a call! Our agents are always happy to chat and answer any insurance-related questions.

8 FAQs on Condo Insurance in Denver, CO

What Is Condo (HO-6) Insurance?

Condo insurance is a type of homeowner's insurance coverage. It's a unique policy that is designed to cover what your condo association or HOA won't.

This insurance policy is classified as an HO-6 policy, which is one of the many home insurance policy forms used across the nation (Allstate). Your HO-6 policy provides coverage for your individual unit.

Your HOA will have a master policy in place, but that policy only provides coverage for the building's exterior and common areas. The master policy coverage does not extend into your home.

What Does Condo Insurance Cover?

A standard condominium insurance policy will include a few basic forms of coverage to protect you, your unit, and your belongings. These include:

  • Personal property - To replace your furniture, clothing, and other personal belongings if they are damaged or stolen in a covered claim.
  • Personal liability - To help cover medical bills and liability costs if a visitor is injured while visiting your home and you're at fault.
  • Dwelling coverage - To help pay for repairs to the interior of your condo if the damage is caused by a covered peril.
  • Additional living expenses or loss of use - If your unit is uninhabitable, this coverage component will cover hotel bills and other expenses in a covered claim.

What Is Not Covered By HO-6 Insurance?

While many disasters and problems will be covered by your policy, the list of "covered perils" for standard policies is limited. Here are a handful of scenarios that are usually not covered by a typical HO-6 policy:

  • Earthquakes
  • Floods
  • Intentional injuries
  • Wear and tear damage
  • Damage caused by birds, rodents, and/or insects
  • Damage caused by underground water

Is Condominium Insurance Required in Denver?

You are not legally required to have a condo insurance policy. However, just like with homeowner's insurance, mortgage lenders generally require you to have a condo policy during the length of your loan (III).

But what if you've paid off your mortgage or purchased the property outright? At that point, you might still need coverage on your condo because of your condo association. They may require all condo owners to have a policy for their individual units. Your condo association should notify you of these requirements when purchasing the property.

How Much Coverage Do You Need?

The appropriate amount of coverage for your condo unit will depend on many different factors. These include things like the master insurance policy, your HOA bylaws, your total home inventory, and more.

Generally speaking, you'll need enough coverage to match the following things:

  • The cost to rebuild or replace your condo
  • The total value of your personal property

Because there are so many factors to consider, it's best to speak with a licensed insurance agent to get more accurate coverage suggestions for your situation.

Which Policy Add-Ons Should You Consider?

As outlined above, a basic HO-6 policy won't provide coverage for many types of disasters. Fortunately, you can acquire extra coverage for those disasters with the following add-ons:

  • Scheduled personal property - To cover any expensive possessions that are worth more than the sub-limits of your personal property insurance.
  • Water backup coverage - To cover damage if water backs up into your unit from a clogged drain or malfunctioning sump pump.
  • Identity theft coverage - To help with expenses following an identity fraud or theft incident.
  • Replacement cost coverage for personal property - This upgrades the coverage for personal belongings from actual cash value to replacement cost coverage.

How Much is Condo Insurance in Colorado?

The cost of condo insurance will vary depending on your policy add-ons, your coverage limits, your location, and many other factors. So, it's a good idea to shop around and get quotes from various insurance companies.

That said, the average cost for condo insurance in Denver, CO in 2021 was approximately $381 per year (Value Penguin).

How Can You Lower Your Insurance Premiums?

If cost is your top concern, consider raising the deductible on your policy. The more you increase your deductible, the lower your premium will go. Just make sure you feel confident enough to pay that higher amount in an emergency.

It's also a good idea to shop around and gather at least 3 quotes from a handful of insurers. Comparison shopping is a great way to find a quote that matches your budget.

And don't forget to inquire about discounts too! Many insurance agencies will offer bundle-and-save discounts and other discounts for things like safety features.

Get Your Accurate Quote for Condo Insurance in Denver

Give your home the protection it deserves with a highly customized policy from the Adler Insurance Group.

We are a locally-owned 2nd generation insurance agency in the metro area. Our agents have decades of experience in the industry and we will leverage our expertise for your benefit. Customer service is one of our top priorities and we'll go the extra mile to keep your property well-protected at an affordable price.

Contact Adler Insurance today to get your accurate insurance quote for your condominium.