Condominium living is a great option for many Utah residents, particularly first-time homebuyers and empty-nesters who are looking to downsize. If you own a condominium in the Beehive State, you can cover your property and protect your finances with a good condo insurance policy.
Independent insurance agents are ready to help you find the best and most affordable coverage. Because they are independent, these agents can work with multiple insurers to find the policy that best meets your coverage and budgetary needs. Contact an independent insurance agent near you to get started.
What Is Condo Insurance?
Often referred to as H-06 insurance, condo insurance is a specialized form of homeowners insurance designed to meet the unique coverage needs of condominium owners.
This insurance can cover the interior of your condo as well as the personal belongings you keep inside it. It can also protect you against personal liability risks and disaster-related displacement.
Do You Need Insurance for Your Condo in Utah?
Condo insurance is not required by law, but it may be required by your bank. If you have a mortgage on your condominium or you have taken out a home equity loan or line of credit, your lender will most likely require you to carry condo insurance until your loan is paid in full.
Whether or not it is required, it is nearly always a good idea. Your home is an investment and condo insurance can help to ensure that investment pays off. A good H-06 policy can cover you against property loss or damage caused by many of the weather-related hazards that are common in Utah such as:
- Wildfires: Utah sees around 1,000 wildfires a year, making this one of the most wildfire-prone states in the country. In one recent year, wildfires caused more than $13 million in damage. Nearly 40% of homes in Utah have a high risk of being damaged by wildfires.
- Severe storms: Including windstorms, snowstorms, thunderstorms, and lightning.
- Falling objects: Including hazards like hailstones and fallen trees.
- Tornadoes: Fortunately, this state only experiences around three tornadoes a year. However, it is a risk that all homeowners should be prepared for.
In addition to having an H-06 policy, as the owner of a condominium, you will be required to help pay for your homeowners' association’s master insurance policy. Your contribution to this policy is taken out of your monthly HOA fees.
What Is the Difference Between Condo Insurance and an HOA Master Policy?
As a condominium owner in Utah, your home and property are protected by two different policies: your condo insurance and the HOA master policy.
- Condo insurance (H-06 insurance): This policy is purchased by you. This specialized form of homeowners insurance provides walls-in coverage for your personal property as well as liability and displacement coverage.
- HOA master policy: This policy is purchased by your homeowners' association. It covers the structure of your condo’s building and provides property and liability coverage for common areas like outdoor spaces, clubhouses, swimming pools, tennis courts, and other amenities.
A good condo insurance policy will work in conjunction with your HOA master policy to provide all the coverage you need without having any overlapping, redundant coverage.
How Much Does Condo Insurance Cost in Utah?
Condo insurance is much less expensive than traditional homeowners insurance because it does not have to include coverage for the structure of your building or its common areas.
Let’s compare the average cost of homeowners insurance with the average cost of condo insurance in Utah:
- Average home insurance cost in Utah: $692 a year
- Average condo insurance cost in Utah: $253 a year
Your actual cost for coverage will be based on considerations like:
- Your condo’s size in square feet
- The crime rate and weather risks where your condo is located
- The estimated value of your personal property
- How much personal liability coverage you are purchasing
- Your claims history and credit score
- The amount of your deductible
A good rule of thumb for scoring lower insurance rates is to earn condo insurance discounts by bundling your coverage with another policy like car insurance. Be sure to ask about this and any other discounts for which you may qualify.
Every insurance company uses a different formula to assess risk and compute rates. This means that every provider you contact for a price is likely to quote you a different rate. Sometimes, these differences can be significant.
By taking the time to compare a few customized quotes before choosing a policy, you can be certain that you are getting your coverage at a good price. Independent insurance agents in Utah make comparison shopping easy.
What Does Condo Insurance Cover in Utah?
Condo insurance provides you with three important types of coverage:
- Contents insurance: This covers your personal property.
- Loss of use insurance: This covers against displacement.
- Condo liability insurance: This covers personal liabilities.
H-06 Contents Insurance
Contents insurance typically provides walls-in coverage for your condo. This means that it can cover your property like furniture, clothing, jewelry, electronics, interior walls, flooring, and appliances.
Your contents coverage can pay for repair or replacement costs if your personal property is lost or damaged by a covered event such as:
- Burglary, vandalism, and other property crimes
- Fire and smoke damage
- Severe weather events, except for floods
- Falling objects like hail or trees
As noted above, condo insurance does not cover flood damage. Unfortunately, floods pose a real threat in some parts of the state, particularly in the Salt Lake City area, where more than 8,000 properties have at least a 26% chance of sustaining significant flood damage in the next 30 years.
If you own a ground-floor condo and you live in an area with a moderate to high flood risk, you may want to supplement your condo insurance with a flood insurance policy. Affordable contents-only flood insurance is available through the National Flood Insurance Program (NFIP).
H-06 Loss of Use Insurance
Loss of use insurance is designed to pay for your additional living expenses if a covered hazard like a wildfire leaves your home uninhabitable until repairs can be made.
If you must seek alternate shelter, your loss of use insurance can pay for things like:
- Temporary accommodations in a hotel or rental home
- A meal allowance if your accommodations do not include a kitchen
- Moving costs and storage fees
- Mileage reimbursement if you have to drive further to get to work
- Pet boarding fees, if needed
Your loss of use insurance coverage can continue until your building is brought back up to code and it is safe to return home, or until you have purchased a new primary residence.
H-06 Liability Insurance
Condo liability insurance is designed to cover your expenses if you or someone in your household unintentionally cause someone else to suffer injuries, property damage, financial losses, or other harm. It can pay for things like:
- Legal defense fees
- Court costs
- Mediation costs
The personal liability insurance provided by your condo insurance can cover things like injuries sustained by guests in your home, dog bites and other pet-related injuries or property damage, and accusations of libel or slander.
Injuries sustained by your guests while in common areas, like your condo’s clubhouse or swimming pool, will be covered by your HOA master policy.
What Are the Best Condo Insurance Companies in Utah?
There are a lot of companies that provide condominium coverage. The best condo insurance companies in Utah are the ones that have a solid track record of providing reliable coverage, responsive customer service, and reasonable rates.
Local independent agents have teamed up with many of the area’s most highly rated insurers. This means that you can be sure that any policies your agent recommends to you are coming from trustworthy insurance providers.
Why Shop for Condo Insurance with a Utah Independent Insurance Agent?
Independent insurance agents understand the risks you face as a condominium owner in your city because they live and work in your community. These agents can help you find a condo insurance policy that can suitably cover you against these risks at a very competitive price.
Local independent agents are available to answer your coverage-related questions and provide you with a selection of customized condo insurance quotes that you can review together. Arrange an obligation-free consultation with an independent insurance agent near you to learn more.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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