According to a recent report, almost 75 million Americans live in either homeowner’s associations or condominium communities at this time. These people make up almost one-third of the U.S. population.
If you own a condo, it’s going to be very important for you to understand what your responsibilities will be as far as securing condo insurance. More specifically, you’ll need to see if you’re going to need a walls in condo insurance policy or a bare walls in condo insurance policy.
Today, we’re going to discuss each of these condo walls in insurance policies to help you decide which one would work best for you. It’ll ensure that you’re able to secure a policy that will provide you and your condo with more than enough protection.
Continue reading to learn more about both walls in and bare walls in insurance policies.
What Is a Walls In Condo Insurance Policy?
Before we can begin talking about what a bare walls in condo insurance policy is, you need to know what a walls in condo insurance policy includes. It’s the more inclusive kind of condo insurance in most cases.
Also commonly called HO6 insurance, a walls in condo insurance policy will cover everything from the exterior walls of a condo in. This means that the walls for your condo will be covered by this type of condo insurance along with your plumbing, electrical, etc.
Walls in condo insurance might also cover things like your flooring, but this isn’t always going to be the case. So if you’re interested in obtaining a walls in condo insurance policy, it would be worth going through the terms for one carefully prior to signing up for it.
What Is a Bare Walls In Condo Insurance Policy?
While a walls in condo insurance policy will extend all the way to your condo’s exterior walls, a bare walls in condo insurance policy will only cover everything from your drywall in. It’s the less inclusive type of condo insurance when compared to condo walls in insurance.
If you would like to have things like your plumbing and electrical covered by your condo insurance, you’ll need to either add these items onto your bare walls in condo insurance policy or go with a walls in condo insurance policy.
Either way, it’s important for you to know that anything behind the walls of your condo won’t be covered by this kind of condo insurance. This could lead to issues if you ever experience problems with plumbing, electrical, etc.
How Can You Decide Which Condo Insurance Policy You Need?
When you live in a condominium community, you will typically have to pay HOA fees each month. These HOA fees will support the homeowners association that oversees your condo community.
Some of these fees will go towards paying for a master insurance policy for you and all your neighbors. This insurance policy will provide coverage in many of the common areas throughout your condo community.
In some cases, this master insurance policy will also provide some limited coverage for your condo. You’ll need to investigate this further to see how much coverage this policy provides for you.
By doing this, you’ll be able to get a much better idea as to whether you’ll need to obtain a walls in condo insurance policy or a bare walls in condo insurance policy.
How Much Will Each Type of Condo Insurance Cost?
If you’re wondering whether or not there will be a difference in price between the two types of condo insurance we’ve talked about here, the answer is “yes.” Generally speaking, walls in condo insurance will cost a little more than bare walls in condo insurance will.
This is because walls in condo insurance covers more than bare walls in condo insurance does. Remember, you won’t have to worry about paying for things like plumbing and electrical repairs when you have walls in condo insurance.
Walls in condo insurance might not always cost that much more than bare walls in condo insurance. But there will be an added cost associated with it that you’ll need to consider.
Is Condo Insurance Required?
Now that you know the differences that exist between walls in condo insurance and bare walls in condo insurance, you should have a good idea of which one would work best for you. But at the same time, you might also be wondering if you even need condo insurance in the first place.
It all depends. Some states specify that condo owners must carry insurance. Additionally, you might be asked to carry insurance if you have a mortgage on a condo since your lender will want to make sure it’s protected.
You should do some digging into this when you’re comparing condo insurance policies. It’ll shed some light on whether you need to carry a condo insurance policy. It’ll also put you in the perfect position to pick out the right policy if you are, in fact, required to sign up for one.
Figure Out Which Condo Insurance Policy You Should Get
There are pros and cons associated with both walls in condo insurance and bare walls in condo insurance. Your job will be to go through them and decide which one would be the best option for you.
You should also shop around for the best condo insurance policy you can find. You might be able to save yourself a bunch of money by comparing quotes from different condo insurance companies.
Read more informative insurance-related articles by poking around on the rest of our blog.