Condo Special Assessments and Insurance Premiums

Some condo HOAs include the master insurance policy within the monthly HOA dues. Other HOA's bill the insurance premiums separately. In this case, the HOA assesses for insurance each year as a re-accuring special assesssment. The insurance assessment amount may be more or less in the future.

Do condo homeowners on the Gulf Coast need more than just a master insurance policy? In addition to the master insurance policy, homeowners also want to obtain an HO-6 insurance policy.

As a Gulf Coast home buyer, you want to protect your investment in a condo with the best coverage available. That's where condo insurance, or HO-6 insurance, comes in. This type of insurance is specifically designed to fill in the gaps left by your condo association's master policy.

With a condo insurance policy, your personal belongings are covered and you are protected in case of any injuries you may be held responsible for. 

Here is an example of special assessments at Walker Key in Orange Beach

ASSESSMENT AND INSURANCE INFORMATION

If you're a Gulf Coast home buyer, you may be wondering about condo insurance and its importance. What is condo insurance? Put simply, condo insurance covers what your association's master policy doesn't - including your furniture, electronics, and other personal belongings within your unit. So, if your TV is stolen or a burst pipe damages your dining room set, your condo policy can provide reimbursement. 

This term is used in the insurance industry to refer to one of several home insurance policy forms. For instance, homeowners typically opt for HO-3 policies while renters have HO-4 policies. What exactly does an HO-6 policy form cover? Simply put, it provides coverage for both condominiums and co-ops. While these two may have different ownership structures, individual insurance policies function in a similar manner. So, whether you own a condo or co-op, condo insurance can provide you with the necessary protection for your home and belongings.