What Is Not Covered by Condo Insurance: Top 10 Shocking Exclusions 2025

What is not covered by condo insurance can be surprisingly extensive and sometimes overlooked. While condo insurance covers a range of potential damages, there are notable exclusions you need to be aware of. Here are some common problems typically not covered:

• Ordinance or law requirements
• Earth movement like landslides or earthquakes
• Water damage from floods or sewer backups
• Power failures
• Neglect or intentional damage

Understanding these exclusions is crucial to ensuring you’re not caught off-guard during a claim.

Condo ownership is a significant investment, and protecting it with the right insurance is essential. At Stanton Insurance Agency, we understand the importance of having a clear picture of what your condo insurance does and does not cover. With locations in Massachusetts, New Hampshire, and Maine, we are dedicated to providing comprehensive insurance solutions that cater to your specific needs.

I’m Geoff Stanton, President at Stanton Insurance Agency. With experience in the insurance industry, particularly in understanding the intricacies of what is not covered by condo insurance, I aim to offer valuable insights that clarify these sometimes confusing exclusions. Let’s explore what your policy might not cover and why understanding these gaps is important.

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Understanding Condo Insurance

Condo insurance can be a bit tricky, but understanding the basics can make a big difference in ensuring you’re fully protected. When you own a condo, your insurance coverage typically involves two main types of policies: the master policy and the individual policy.

Master Policy

The master policy, also known as the HOA insurance policy, is maintained by your condo association. This policy covers the building’s structure and common areas such as hallways, roofs, and amenities like pools or gyms. There are generally two types of master policies:

• All-in Policies: These cover the building’s exterior and some of the interior elements, such as wiring and plumbing. However, they do not cover your personal belongings.

• Bare Walls-in Policies: These only cover the structure up to the bare walls, excluding interior features like carpets and built-in appliances.

It’s essential to check your condo association’s documents to understand what your master policy covers.

Individual Policy

As a condo owner, you’re responsible for the individual condo insurance policy, often referred to as an HO-6 policy. This policy complements the master policy by covering:

• Personal Property: This includes your furniture, clothing, electronics, and other personal items inside your condo. If a fire or theft occurs, your individual policy steps in to cover these losses.

• Liability Protection: This protects you if someone is injured in your unit or if you accidentally cause damage to another unit. For example, if a guest trips over a rug and gets hurt, your liability coverage can help pay for medical expenses or legal fees.

• Loss of Use: If your condo becomes uninhabitable due to a covered event, this coverage helps pay for temporary living expenses like hotel stays or dining out.

Understanding the differences between the master and individual policies is crucial. While the master policy covers the building, your individual policy ensures your personal belongings and liabilities are protected. Always review your policy details and consult with your insurance agent to fill any gaps in your coverage.

With locations in Massachusetts, New Hampshire, and Maine, Stanton Insurance Agency is here to help you navigate these complexities and find the right coverage for your condo.

What is Not Covered by Condo Insurance

When it comes to understanding what is not covered by condo insurance, there are several important exclusions to be aware of. Knowing these can help you avoid unexpected costs and ensure you have the right additional coverage where necessary.

Flooding and Earthquakes

Condo insurance typically does not cover damage caused by natural disasters like flooding and earthquakes. These events are considered too risky for standard policies. If you live in an area prone to floods or seismic activity, you will need to purchase separate flood or earthquake insurance policies. These policies are essential to protect your investment from these specific natural disasters.

Mold and Wear and Tear

Mold damage is another exclusion in many condo insurance policies. Mold resulting from a burst pipe might be covered, but mold due to poor maintenance or naturally occurring conditions usually is not. Similarly, damage due to wear and tear is not covered. This means regular maintenance is key to preventing such issues. If mold develops from a covered event, check your policy for any limits or exclusions that may apply.

Insects and Rodents

Damage caused by insects and rodents is generally excluded from condo insurance. These issues are considered preventable with proper maintenance and care. Regular inspections and pest control measures can help you avoid these problems. If you do experience damage from pests, it will likely be your responsibility to cover the repair costs.

Intentional Damage

Finally, intentional damage is not covered by condo insurance. If damage occurs because of intentional acts, whether by you or someone else, your policy will not cover the costs. This includes situations where you might be found liable for intentional harm to your own property or others.

Understanding these exclusions is crucial for condo owners. While your HO-6 policy covers many risks, it doesn’t cover everything. Always review your policy details and consider additional coverage options to ensure comprehensive protection.

Common Exclusions in Condo Insurance Policies

While condo insurance offers valuable protection, it’s important to know what is not covered by condo insurance. Many policies have specific exclusions, especially when it comes to high-value items. Understanding these exclusions can help you avoid gaps in coverage.

Jewelry and Valuables

Condo insurance often has strict coverage limits for jewelry and other valuables. For example, policies might limit jewelry coverage to $1,500. This means if your $10,000 necklace is stolen, you could be out $8,500. To ensure full protection, you can “schedule” these items. Scheduling means adding an endorsement to your policy that covers the full value of your high-value items.

High-Value Items

Similarly, art, collectibles, and other high-value items might not be fully covered under a standard condo insurance policy. Just like with jewelry, there are often policy limits that cap the payout for these items. If you own expensive art or rare collectibles, you might need additional coverage to protect them fully.

Scheduling your high-value items is a smart move. This involves getting a professional appraisal and adding a rider to your policy. While this might increase your premium slightly, it ensures you won’t face hefty out-of-pocket costs if something happens to your treasured possessions.

In summary, condo insurance can protect many of your belongings, but for jewelry, art, and collectibles, additional steps are necessary. Scheduling these items can provide peace of mind and financial protection.

Next, we’ll explore how to ensure full coverage by understanding your master policy and considering additional policies.

How to Ensure Full Coverage

When it comes to condo insurance, making sure you have full coverage involves more than just a standard policy. Let’s explore how you can bridge any gaps.

Additional Policies

Condo insurance doesn’t cover everything. To protect your home from flooding or earthquakes, you may need separate policies. These natural disasters are typically excluded from standard coverage.

• Flood Insurance: If you live in a flood-prone area, consider purchasing a flood insurance policy. This is crucial for protecting your belongings from water damage that isn’t covered by your main policy.

• Earthquake Insurance: Earthquakes might not be common in all areas, but if you live in a region where they occur, it’s wise to get an earthquake policy. This will cover damages that your standard condo insurance won’t.

By adding these policies, you can ensure that your home and belongings are protected from these specific risks.

Scheduling Items

For jewelry, art, and collectibles, a standard condo insurance policy might not suffice. These items often have coverage limits that fall short of their actual value.

• Schedule Your Valuables: To fully protect these high-value items, you can “schedule” them. This means adding an endorsement to your policy that specifically covers each item for its full appraised value.

• Get a Professional Appraisal: Before scheduling, it’s important to have your items professionally appraised. This ensures that you have documentation of their value, which is necessary for proper coverage.

• Add a Rider: Once appraised, you can add a rider to your policy. This will increase your premium slightly, but it provides peace of mind knowing your valuables are fully covered.

Understanding your master policy is also key. It’s important to know what your condo association’s policy covers so you can fill in the gaps with your own insurance. This might include coverage for interior elements like walls and flooring, which could be excluded from the master policy.

By considering additional policies and scheduling high-value items, you can ensure comprehensive protection for your home and possessions. Next, let’s address some frequently asked questions about condo insurance.

Frequently Asked Questions about Condo Insurance

What is the rule of thumb for condo insurance?

When determining how much condo insurance you need, a common rule of thumb is to cover at least 20% of your condo’s appraised value. This helps ensure you have adequate dwelling coverage for the interior elements of your unit, such as walls, fixtures, and built-in appliances. This is just a guideline, and your actual needs may vary based on your specific situation and the coverage provided by your condo association’s master policy.

What does HO6 mean in insurance?

HO6 is a type of insurance policy specifically designed for condo owners. It provides walls-in coverage, which means it covers the interior of your unit. This includes not just structural elements like walls and floors, but also your personal property, such as furniture and electronics. Additionally, HO6 policies offer personal liability protection in case someone is injured in your condo or if you accidentally cause damage to someone else’s property.

Does HO6 cover drywall?

Yes, an HO6 policy typically covers drywall as part of the interior unit coverage. However, it’s important to note that certain exclusions may apply. For example, damage caused by poor maintenance or neglect might not be covered. Also, while drywall is generally included, you should check your policy for specifics on coverage related to plumbing, electrical systems, and other structural elements. Understanding these details ensures you’re fully aware of what your policy covers and where you might need additional protection.

Conclusion

Understanding what is and isn’t covered by condo insurance is crucial for protecting your valuable assets. Without this knowledge, you might face unexpected costs that could have been avoided. At Stanton Insurance Agency, we aim to provide trusted protection for your home and belongings, ensuring you have peace of mind.

Condo insurance is a bit different from other types of insurance, and it can be confusing. We’re here to help you navigate these complexities. Our team is dedicated to making sure you know exactly what your policy covers and where you might need additional protection.

Whether you need coverage for personal property, liability, or additional living expenses, we tailor our policies to fit your needs. We also offer guidance on how to fill any gaps in coverage that your HOA master policy might leave open. This way, you can be confident that your condo and everything inside it is well-protected.

Don’t wait until it’s too late. Protect your valuable assets with a comprehensive condo insurance policy from Stanton Insurance Agency. Contact us today to learn more about how we can help you safeguard your home and belongings.