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Buyer education - keep this one

Condo Insurance, Explained

Your condo association carries a master policy, but it does not cover everything inside your unit. Here is what your lender requires, when the paperwork is due, how the first year and escrow work, and where the master policy stops and your own coverage begins. This is educational only - your insurance agent is the one licensed to advise on coverage.

Why your lender requires it

In short, {{facts.whyRequired}}. Your lender also requires an HO-6 policy of your own {{facts.lenderRequiresHo6}}.

The binder: due before closing, not at it

Your insurance binder - proof of coverage - is typically due {{facts.binderLeadTime}}. It goes to {{facts.binderGoesTo}}, not to you, so {{facts.bindingUrgencyNote}}.

Year one premium and escrow

At closing
Year one premium

It is {{facts.yearOnePremium}}.

Every payment
Escrow deposit

That means {{facts.escrowMechanic}}.

What the master policy does and does not cover

Master policy basics: {{facts.masterPolicyWhere}}. The types are {{facts.masterPolicyTypes}}. Ask your association for {{facts.docsToGet}}.

What your HO-6 covers

Your HO-6 typically covers {{facts.ho6Covers}}. It exists to close {{facts.ho6GapRisk}}.

Walls-in minimum and loss assessment

Walls-in coverage minimum: {{facts.wallsInMinimum}}. Loss assessment coverage protects {{facts.lossAssessment}}. Note that {{facts.masterDeductibleNote}}.

Seven questions for your insurance agent

  • Which master policy type does our association carry?
  • What is the association deductible, and can it be assessed to me?
  • Does my HO-6 limit match what the master policy does not cover?
  • Do I have loss assessment coverage, and how much?
  • What happens if a pipe inside a shared wall fails?
  • Does my policy cover my improvements if I renovate?
  • Is there a separate deductible for water damage?

Revisit your coverage {{facts.reviewTrigger}}.

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Equal Housing Opportunity. {{lo.company}}, NMLS #{{lo.nmls}} (Company NMLS #{{compliance.companyNmls}}). This material is educational only and is not a commitment to lend, an offer of credit, or a fee quote; all loans are subject to underwriting approval. This is not insurance advice - coverage decisions should be made with a licensed insurance agent, and actual costs vary by carrier, coverage level, and property. This co-marketed material is shared by each party at its fair-market-value cost consistent with RESPA Section 8; no party pays for referrals and none are required.