When you look for condo insurance, or an HO6 policy, you need to choose how much liability insurance you want your policy to include. Liability insurance protects you financially if someone gets injured in your residence or if you're responsible for someone else’s injuries or personal property damage. Since lawsuits can be expensive, it can be wise to add as much liability coverage as you can reasonably afford.
An independent insurance agent can answer your questions about condo liability coverage and help you get the right policy for your needs at a competitive rate. A local agent can also advise on the right amount of liability coverage for you. But first, here's what you should know about condo liability insurance.
What Is Condo Liability Insurance?
Condo liability insurance is a form of personal liability insurance that can cover incidents of injuries or personal property damage to a third party. The incidents may occur inside your condo or away from home.
Your condo insurance's liability coverage can help cover the costs of a lawsuit if a third party sues you for a claim of bodily injury or personal property damage. Coverage can reimburse you for attorney and court expenses, as well as settlement costs.
What Does Condo Liability Insurance Cover?
Condo liability coverage may vary somewhat from policy to policy, but typically covers the following:
- Bodily injury liability: This option covers guests’ injuries in your home, such as from a slip on a wet floor or a fall from a balcony. Many policies also cover bodily injuries you cause while outside your home, such as when playing sports.
- Property damage liability: Covers costs if you're held liable for personal property damage to a third party, typically through negligence. It can cover you if you accidentally cause a fire that spreads to the units surrounding yours, damaging personal property in those homes.
- Court costs and legal fees: If you get sued for a covered claim, your condo liability coverage can pay your legal costs.
To fully understand condo liability coverage and how it can protect you, be sure to talk with an independent insurance agent. You can typically request an increase in your liability coverage limits for a fairly small premium increase.
Does Condo Liability Insurance Cover Dog Bites?
Your condo liability insurance typically covers medical bills and may cover punitive costs associated with dog bites and other injuries caused by pets. But don't assume your policy covers dog bites; if you need this coverage, you may have to specifically request it. If you get a pet after purchasing your policy, you should call your condo insurance company to make sure it's covered.
Some dogs have been designated as “dangerous breeds,” and the cost of liability coverage for these animals is much higher. Some insurance companies won't provide any coverage for dangerous breeds and may deny you a policy if you own one of these dogs. If you have a dog, be sure to discuss the implications with an independent insurance agent before purchasing a policy.
Do I Need Excess Liability Coverage or Umbrella Insurance?
If a major injury happens to a guest in your condo, medical costs and other damages may exceed the liability coverage of your condo insurance policy. Likewise, in the event you're responsible for extensive damage, such as a condominium fire, you may be liable for hundreds of thousands of dollars in property damage.
If your incurred costs exceed your coverage limits, you can be required to pay the remaining amount out of pocket. An umbrella insurance policy can provide additional protection to help you cover excess liability costs.
Umbrella insurance covers costs that exceed the maximum coverage of any of your underlying insurance policies, including your condo insurance, auto insurance, etc. Umbrella policies are typically inexpensive for the amount of coverage provided and can give you peace of mind if something catastrophic should happen. Coverage is often available in increments of $1 million.
Does the Condo Association's Master Policy Cover Liability?
When you own a condominium, you pay dues to the condo association to cover the maintenance of outdoor and common area facilities. The condominium association carries a master insurance policy that includes liability coverage for injuries or property damage in these areas.
This means that if you or one of your guests is injured in the on-site gym or you slip and fall on an icy sidewalk outside your condo, the condominium association or co-op liability insurance is likely to cover the expenses.
However, you can be held liable if a guest gets injured while inside your home, or if you're responsible for someone’s injury or personal property damage outside your home. Such injuries or damage are often minor and can be handled quickly and easily with a liability claim.
Sometimes, however, liability costs can be high and can even lead to a lawsuit. When this happens, your liability insurance can cover related costs and provide you with major financial relief.
Find the Right Condo Liability Insurance With Help From an Independent Insurance Agent
The best way to find the right condo liability insurance for you is by working with an independent insurance agent. These agents can help you assess your condo liability coverage needs and shop and compare quotes from multiple carriers for you. They'll also be there for you when claim time comes or you need to update your coverage.
Sources
https://www.allstate.com/resources/condo-insurance/what-is-condo-liability
