Colorado Condo Insurance – HO6 Insurance

Colorado condo insurance coverage is going to protect you in a variety of ways. Obtaining an HO6 insurance policy continues to be more and more complex due to the difficulties wildfires and other natural disasters are presenting throughout the state.

But there are still options available and your policy can help protect you from such perils and much, much more. This is great news as more and more condo developments call The Centennial State home thanks to developers focusing on building multi-family condos and co-ops.

 It’s important to understand not only your risks but the protections available to you. From natural disasters to theft to liability disputes, your condo insurance can help you mitigate several risks. Here are the most common coverages available:

Dwelling Coverage

The largest protection you receive with Colorado condo insurance comes from your dwelling coverage. Here, your condo is protected starting at its drywall and working its way inward for the structure of your home.

One common mistake condo owners make, however, is not having enough dwelling coverage. You’re going to need to have enough to rebuild your condo after a total loss. Often, this is thought to match the property’s current value, but you’ll actually need to have enough coverage to cover the amount it will cost in building materials.

Due to a variety of reasons, including many complex economic factors, as the cost of labor and materials continue to rise, your policy may be inadequate to restore such a loss. Reviewing your options with a licensed condo insurance agent can help you stay prepared today and tomorrow. It’s also a good idea to review your coverage annually to ensure you are still adequately protected.

Personal Property Coverage

Similar to a homeowners insurance policy, condo insurance can help you protect your personal property. It’s important to remember that while personal property coverage is helpful, there are policy limits and exclusions to consider. Both dwelling and personal property coverages are often combined into a single policy in many cases.

Liability Coverage

When visitors enter your property, if they are injured, you can be found liable for helping them restore their loss through a variety of expenses. There are medical costs to consider and there could even be legal expenses depending on how things go. Liability coverage is available through HO6 insurance policies and can help protect your finances.

Condo Association Insurance/Condo Homeowners Insurance

Being part of a homeowners association (HOA) has its pros and cons but for condo owners, your association’s master insurance policy is certainly a nice form of protection. Your HOA fees pay for this coverage and it can help protect a variety of shared areas throughout the grounds including community pools, stairs, elevators, gyms, tennis courts, basketball courts, and more.

There are three different types of master insurance policies available including All-In Coverage, Bare Walls Coverage, and Single Entity Coverage. Each offers its own level of protection with differing policy limits and exclusions that apply.

While these coverages are important, they are also aimed at protecting shared portions of your development, not your individual condo. This means you’ll need the right condo insurance in Colorado to protect against various perils and protect your home, personal belongings, and finances on an individual level.

Loss-Of-Use Coverage

Some losses are too great to immediately overcome. When your home is uninhabitable, loss-of-use coverage can help you get through the costs of living while you await repairs to restore your home. Your coverage is there for you to cover the costs of housing and food during this time, but it’s important to note that policy limits apply.

Loss Assessment Coverage

When condos share areas and an HOA, these portions of the property may see an accident occur in which coverage from the HOA will provide compensation. But in the event the loss is greater than your association’s collective policy, you and your neighbors may be on the hook for the rest.

For example, if someone injures themselves while walking down a shared flight of stairs at your development. Loss assessment coverage provides an extra level of protection that can give you peace of mind.