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Condo insurance is required when buying a condo. Also known as HO-6 insurance, it covers your belongings, liability after an accident, and any damage to your individual unit that isn’t covered under your condo association’s master policy. Condo insurance does not cover damage caused by flooding, earthquakes, or normal wear-and-tear.
Buying condo insurance is pretty similar to buying other types of insurance; there are multiple companies that offer different policies and rates. You can purchase condo insurance online to save yourself time and money.
Key Points
• Condo insurance, also called HO-6, covers personal belongings, liability, and unit damage not included under the HOA master policy, but excludes flooding, earthquakes, and normal wear-and-tear.
• Reviewing your HOA master policy first helps identify existing coverage, so you avoid duplicating it when selecting your own personal condo insurance policy.
• Basic unit details like build year, square footage, safety features, upgrades, and renovations are all required by insurers before generating an accurate quote.
• Comparing quotes from multiple online providers, customizing coverage limits, and creating a detailed inventory of personal belongings are key steps to finding the right policy.
• Choosing a higher deductible can lower monthly premiums, though discounts for bundling, military service, or a claim-free history can also meaningfully reduce overall costs.
Why Buying Condo Insurance Online is Faster and Easier
Buying condo insurance online can be faster and easier than buying from a brick-and-mortar company. You can complete the process online in only a few minutes without having to speak to anyone on the phone or in person. Plus, buying condo insurance online allows you to easily compare condo insurance quotes from multiple companies to find the best quote.
Documents and Information You Need
When buying condo insurance online, there are several documents and pieces of information that you will need. These documents and information can help you when determining how much condo insurance you need.
Your HOA Master Policy Details
You should first start with your HOA master policy. A HOA master policy is the homeowners association’s insurance policy that protects shared property and liability exposures within the community. A HOA master policy typically includes building exteriors as well as common elements like roofs, hallways, stairwells, elevators, parking areas, fitness centers, pools and other shared amenities. The HOA master policy provides liability protection for the association if someone is injured in a common area or claims property damage due to the HOA’s actions or maintenance responsibilities.
Knowing what is already covered under your HOA’s master policy can help you when choosing condo insurance for yourself. If something is covered under the HOA master policy, you don’t need to add it to your own policy.
Basic Condo Unit Information (Square Footage, Year Built)
You will need to provide the basic unit information of your condo. Things like the year your condo was built and the square footage of your condo will be used by the insurance company to determine your quote.
Mortgage Lender Information (If Financing)
If you are financing your condo, you will also need to provide your mortgage lender information. Condo insurance is required by mortgage lenders.
Information on Safety Features, Upgrades, and Renovations
Additional information, such as safety features in your condo, upgrades made to your condo, and any renovations that have occurred, is also important to provide to the insurer before obtaining your quote. This ensures that your policy reflects the actual value of the condo, including any upgrades or renovations. Upgrades to enhance safety may lead to lower premiums, while upgrades that add value to the condo may add risk and lead to higher coverage needs.
Step-by-Step Guide to Getting Your Quote Online
To get your condo insurance quote online, you should follow these steps in the homeowners insurance guide.
Step 1: Input Your Condo Details and Address
Start by inputting your condo details and address into several online insurance providers to get several different quotes. The insurance providers will use your condo details and address when determining your quote. Having several quotes to compare can help you find the best value for your needs.
Step 2: Customize Your Coverage Limits (Dwelling and Personal Property)
Next, you need to customize your coverage limits for both dwelling and personal property. You should make a detailed list of all of your personal belongings, like furniture, clothing, jewelry, art, and electronics. You could even use an online personal property calculator to help you estimate the total value of your possessions, based on estimated replacement costs. It is important to understand the difference between replacement value (the cost to replace an item with a new one) and actual cash value (the item’s current market value).
Step 3: Choose Your Deductible
When choosing a deductible, you should think about your budget and risk tolerance. A higher deductible may reduce your monthly premium, but if you need to file a claim, you will be on the hook for more money out of pocket.
Step 4: Apply Discounts and Review Your Price
Be sure to check for any available discounts. For example, some insurance companies may offer discounts to active military personnel or for maintaining a claim-free history. You may also be able to save by bundling your condo insurance with an auto insurance policy.
Finally, review your price to make sure that everything looks correct.
Finalizing Your Online Purchase
Once you have reviewed your policy details to ensure that you understand the coverage limits, deductibles, exclusions, and any other details, you can begin finalizing your online purchase of condo insurance. You will complete the payment process online; be sure that you have received a confirmation of your policy online or via email so that you can keep this for your records. If required, activate your policy. Store your policy documents securely and keep them accessible for future reference if needed.
Paying Your Premium (Direct vs. Escrow)
You can pay your condo insurance premium by paying directly to your insurance provider or by paying through an escrow account.
If you have a mortgage for your condo, you may pay your insurance premium through an escrow account, which is part of your monthly mortgage payment. Paying through an escrow ensures that your insurance premiums are paid on time and in full every month. When paying through an escrow, you will likely have to pay your first year of insurance premiums out of pocket at closing.
Alternatively, you can pay your insurance premium directly to your insurer if you have enough equity or own your condo outright. Paying directly provides you with more flexibility in payment schedules and methods, but you have to manage your own insurance payments.
Downloading Your Declarations Page for Your Lender
Finally, download your declarations page for your lender. A condo insurance declarations page is a document that includes the details of your condo insurance policy, like coverage limits, policy details, deductibles, and exclusions.
Condo insurance is usually a requirement as part of the closing process for your lender. You should have your condo insurance in place and ready to go before closing. The policy should become effective the day before or the day that you take ownership of the condo in order not to delay settlement.
The Takeaway
Buying condo insurance online can save you time, money, and stress by allowing you to shop around for the best quote for your needs. Whether you already own multiple condos or you are looking for first time condo buyer insurance, you can find a policy.
If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.
SoFi brings you real rates, with no bait and switch.
FAQ
Can I get an instant condo insurance quote online?
It is definitely possible to get an instant condo insurance quote online. There are many insurance companies that offer free and instant quotes online.
Is it safe to buy condo insurance online?
Yes, it is perfectly safe to buy condo insurance online. Just be sure to do your research into the insurance provider and the policy that you are intending to purchase.
Can I buy a condo policy online before I close on the unit?
Yes, you can buy a condo insurance policy online before closing on the unit. In fact, many lenders require proof of your own condo insurance before closing.
Do I still have access to an agent or customer support if I buy online?
Yes, you will still have access to an agent or customer support if you buy condo insurance online. Many providers offer support through phone, email or live chat.
How quickly does an online condo insurance policy become active?
After purchasing an online condo insurance policy, the activation date depends on the type of coverage you are buying, the insurance company’s underwriting process and policies, and whether it is a new policy or renewal.
Photo credit: iStock/FG Trade
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