Condo Insurance in Illinois

Illinois law requires owners to have condo insurance, but it’s typically required by the Homeowners Association (HOAs) and lenders. HOA organizations are required to carry certain types of insurance to offer some protection for owners, and lenders want assurance of coverage to shield their financial investment. Next Level Insurance Agency is happy to serve Hanover Park, IL condo owners with this important coverage.

What Condo Coverage Must the HOA Carry?

HOA charges include a set association fee that is used partially to cover property insurance for the complex’s common areas like decks, pools, recreation areas, and the permanent exterior aspects of units. Known as a master policy, there are three different types of coverage:

• Bare Walls-in Policy: The least inclusive master policy option covers the exterior framing of units and all collectively owned structures and items. These coverage limits cover the bare walls, ceilings, and floors of the unit but not fixtures or appliances.
• All-inclusive Coverage Policy: This covers necessary repairs to restore units to their original condition after property damage. All-inclusive includes the appliances and owner’s investments in property improvements.
• Single Entity Coverage: While it covers all property in the community, these policies don’t cover the owner’s personal possessions or compensation for improvements or renovations. However, it does cover interior fixtures and appliances.

Be Fully Protect Property with a Private Policy

To enjoy greater coverage options, owners need to buy their own comprehensive policy to cover their possessions and everyone from the floors, walls, ceiling, and interiors. This coverage must include full replacement costs in amounts sufficient to cover rebuilding the property in compliance with current building codes.

It’s essential to understand what type of master policy the HOA has and what is covered under their policy. This allows you to make an educated decision concerning what type of additional coverage your personal insurance should cover to complement the HOA policy.

Get Coverage For Your Condo Today

Next Level Insurance Agency serves Hanover Park, IL and surrounding cities with condo insurance to meet their needs. Stop by our office or contact us to learn more about our policy options.