Many California residents own a condo that they either rent out or live in, but only a few of these owners have proper insurance coverage – which is a bit different that California home insurance. Typically, the Homeowners’ Association (HOA) insures the exterior of the condominium building and the commonly owned property while providing liability insurance for the association. However, the HOA insurance policy usually provides only limited coverage for the interior units and personal belongings.
In addition, the HOA insurance policy may exclude coverage for your unit in cases such as break-ins, water damage to your walls, or a slip-and-fall accident in your unit. Condominium insurance policies are designed specifically for these reasons. Protect yourself from high repair costs by getting proper insurance.
A condominium insurance policy can also protect your personal property, personal liability, and the interior fixtures of your unit. Due to the current market crisis, many HOAs are reducing coverage on their master policy, leaving owners with financial losses when claims occur. The amount of coverage required for your unit will vary according to your HOA. While some HOAs will require you to insure the window, flooring, wall covering, etc., others will cover the interior of the unit (excluding any improvements after the condo was initially built).
It is important to read your CC&Rs (conditions, covenants & restrictions) each year and speak with your Tower Insurance agent to make sure there are no gaps in your coverage.