Fast Condo Insurance Quotes When Clients Need Them
8am - 7pm CST
|
888.466.8868
|
Monday - Friday

What Insurance Agents Need to Know about Condominium Insurance

Your clients' condominiums give them the best of both worlds – affordable homeownership without all the responsibility of maintaining the property on their own. But sharing some responsibilities with their condo association doesn't eliminate your client's need for insurance. The association's policy probably covers the building and the common areas, but your client still needs to insure their…

  • Personal belongings.
  • Interior walls, floors, and fixtures.
  • Personal liability.

Let's learn more about Condominium Insurance so you can get your client the coverage they need.

What Is Condo Insurance?

Like Homeowner’s Insurance, Condo Insurance offers your client property and liability coverage. Standard policies are written on form HO-6, also called the Unit Owners form, which covers the unit's…

  • Walls.
  • Floors.
  • Ceiling.

Condo Insurance can also repair or replace your client’s personal items if they are damaged by:

  • Fire.
  • Windstorm.
  • Theft.
  • Vandalism.

Some policies may pay for living expenses when a covered event makes the condo uninhabitable, too.

Because property is divided between the condo owner and the condo association, insurance responsibilities vary from place to place. Some associations may insure the outside of the building up to the paint inside the unit. Others may insure the building up to the start of the drywall.

Liability is parsed between the condo owner and the association, too. The condo association is often liable for accidents in common areas, but those that happen on the walkway and residence are typically the insured's responsibility. The client's Condo Insurance may help them pay for legal expenses and medical bills when…

  • A delivery person slips on their stairs.
  • An inebriated houseguest hits their head during a party.
  • A hose breaks and causes water damage in another unit.
  • The client smashes a hole in a common wall while moving in.

Find out what the association's master policy covers to see where your client's insurance responsibilities begin.

Which Clients Need Condo Insurance?

When you’re marketing Condominium Insurance, your first instinct may be to target people who are buying a unit. That’s a good place to start because most lenders require HO-6 coverage to close the deal.

But you don’t have to stop there. You can also market the product to people who already have Condo Insurance. Use your Insurance Noodle membership to see if you can find a better rate for similar coverage.

What Do Agents Need to Know before Writing Condo Insurance?

First, you need to understand the condo owner and condo association relationship. Your client owns their unit, but they also share ownership of the common areas in their complex or neighborhood. The condo association is a legal entity that collects fees to help take care of those areas, which includes insuring them.

Most of the time, the condo association has one of two master policies:

  • Bare-walls-in policy. This kind of insurance covers the property from the exterior framing inward. It excludes the fixtures in your client's unit, such as granite countertops, built-in cabinets, and flooring. Clients whose association has this policy will have more insurance responsibilities.
  • All-in policy. An all-in policy starts at the exterior framing and continues to the fixtures and installations in your client's unit. This policy reduces your client's individual insurance responsibilities.

Ask your client's association for the master policy or the condo association bylaws. Review them closely. Once you've determined which parts of the unit are your client's responsibility, you have a better idea of how much coverage they need for the structure.

Of course, you also have to consider what's inside their unit, so assess the value of their personal belongings, too. You might want to ask…

  • Do you have any valuable property? Expensive items, such as furs or jewelry, may need to be scheduled separately.
  • Do you have any dogs? Some dog breeds are considered vicious. Whether or not that's fair, it can impact a carrier's willingness to insure your client.
  • Are you in a flood zone? The master policy may include flood insurance for the building, but it probably won't cover any of your client's personal property. Look to the National Flood Insurance Program for coverage.

The answers to these questions can help you determine their Condo Insurance limits.

How Does Insurance Noodle Help Agents Quote Condo Insurance?

Insurance Noodle agents get immediate access to all home markets. That means no matter what kind of property your client owns, you can get fast, accurate quotes for them through Noodle.

Plus your portal's universal application means you don't have to fill out multiple apps to compare Condo Insurance rates for your client. Just log in, complete a single app, hit submit, and get your client covered.

Not a member? Call 888.466.8868 or email [email protected] to join.

Instant Small Business Insurance Quotes