What Insurance Plans Must Condo Owners in Austin Get

Condo owners in Austin can rely on the master policy to cover the building and common spaces. However, it’s important to realize that the policy typically will not cover the condo’s interior.

This policy does not cover your belongings, improvements you’ve made, and liability coverage for claims against you.

In this post, we will discuss the insurance plans that all condo owners in Austin must have. We will also explore additional coverage options that can offer more protection.

Insurance Plans Condo Owners in Austin Must Get

HO-6 Policy

Condo insurance, also known as an HO-6 policy, is specifically designed for condo owners. It is an insurance policy that covers personal property and liability. Most policies also cover additional living expenses if you can’t stay in your condo due to damage or repairs.

HO-6 policies typically cover the following:

• Personal property: This covers damages or loss to personal property inside your condo unit. It can include furniture, clothing, electronics, and other possessions.
• Liability: This covers legal fees and damages if someone suffers injury in your condo unit.
• Additional living expenses: The policy might cover temporary living expenses during repairs.
• Loss assessment coverage: This covers your portion of any damage assessments made by the condo association not covered under the master policy.

Standard condo insurance covers damage caused by “named perils,” which includes the following:

• Fire or lightning
• Windstorm or hail
• Riot
• Explosion
• Aircraft (including self-propelled spacecraft and missiles)
• Vehicles (including the impact from a vehicle but not the vehicle itself)
• Vandalism
• Smoke
• Theft
• Damage from the weight of snow, ice, or sleet on a roof
• Falling objects
• Accidental discharge or overflow of water or steam
• Volcanic eruption

Additional Coverage

• HO-17 32 endorsement

An HO-6 policy is a type of insurance for condos that covers only 16 specific types of damages. An HO-17 32 endorsement protects from a wider range of perils. It can be helpful if you believe your condo is at risk for additional perils.

• HO-17 31 endorsement

An HO-17 31 endorsement expands the coverage for your personal property beyond the “named perils” in your standard policy. Instead of only covering specific incidents like fire or theft, this policy covers you for “all risks.” However, there are exclusions to the policy.

• HO 04-90

A replacement cost endorsement is also worth adding. It provides coverage for what your personal property would cost to replace today—not its depreciated value.

The Bottom Line

Condo insurance can be complex. It can help to have coverage beyond the standard policy. You might want to consider speaking with an insurance agent before selecting coverage.

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