Frequently Asked Questions:
Condo Insurance

Condo insurance is not required by law, but if you have a mortgage, your lender may require insurance for the duration of your mortgage. Even if you own your condo and don’t have a mortgage, most condo associations require unit owners to have a condo insurance policy in Hawaii.

If you are a condo owner in Hawaii, your condo association is required by law to carry a master insurance policy, but that only includes coverage for the building and common areas, and liability insurance for any injuries sustained in common areas.

Even if you don’t have a mortgage and own your condo, it is a valuable asset. Condo insurance in Hawaii provides protection for your unit and personal property if they are damaged or destroyed by a covered event. Without a condo insurance policy, the cost to replace your personal property and the additional cost to replace improvements made to your unit would need to be made out-of-pocket.

Condo insurance rates will vary and may be dependent on factors like your condo’s condition, types of materials used, claims history, and policy deductible amounts.

A standard condo insurance policy typically includes the following coverages:

• Dwelling Coverage – The amount of dwelling coverage should include enough to cover any improvements made inside your unit.
• Personal Property – Covers the cost to replace certain belongings such as furniture and electronics that are stolen or damaged by a covered loss at actual cash value.
• Additional Living Expense – Covers costs that you may incur if you are temporarily unable to live in your condo due to a covered loss.
• Personal Liability Protection – If you or resident family members are found legally responsible for accidentally damaging someone else’s property or injuring another person, personal liability coverage may help pay for related repair costs and legal fees, in addition to helping with medical costs.

It is recommended to consult with an insurance agent to discuss your situation and the policies and coverages you need.

Your condo insurance coverages and limits should be enough to accomplish the following:

• Restore your unit to the condition it was prior to the covered loss.
• Replace your personal items
• Reimburse any living expenses if your unit is damaged or destroyed and you are unable to live in your home.
• Cover any injuries and damages that you or resident family members may have caused.

Please note that this information is general in nature and does not represent insurance contract provisions, and is not meant to take the place of an insurance review. Please contact an independent insurance agent for more information. Copyright © 2021, Island Insurance