Why Commercial Condo Unit Owners Insurance Matters for Your Business
Commonly referred to as an HO6 policy, commercial condo unit owners insurance is specifically designed to protect your individual space while also providing liability coverage and living expenses if your unit becomes uninhabitable.
Often called “walls-in” coverage, these policies safeguard the interior of your commercial condo unit, while the condo association’s master policy covers the building’s common areas. This distinction is important when considering your overall insurance needs.
Keep in mind that standard commercial condo insurance coverage may not cover every risk, such as flooding or earthquakes. Depending on your location and how much time you spend in the unit, you may need to explore additional policies to fully protect your investment.
If you’re searching for comprehensive condo unit owners insurance or specialized commercial condo insurance, Our independent Insurance agency can help tailor coverage to your specific needs.
What Does a Standard Commercial Condo Insurance Cover?
Traditionally, condo insurance policies provide coverage for several categories, including building property, personal property, personal liability, loss of use, and loss assessment.Â
The building property is focused on the individual unit and includes fixtures and walls. Second, personal property includes electronics, furniture, and other goods that are movable.
Third, personal liability includes any legal expenditures from lawsuits or claims made against you. Fourth, loss of use includes the expenses related to transportation and relocation in the event that the unit becomes uninhabitable. Lastly, loss assessment includes your losses that are taken by the association.
The key difference between the HO6 policy and the typical HO3 homeowner's policy is that the former is exclusive to the interior unit structure from the walls-in.Â
Normally, the business property coverage and specialty dwelling coverage for condos cover a set list of perils, including fire, vandalism, theft, and hail. The hazards which aren't disclosed by name are not covered. This means you are single handedly responsible for paying for those property damages.
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Additional Coverage Options for Condo Unit Owners
Outside of condo unit owner's insurance, every common area belonging to a single condo building has protection under a master policy purchased by the association. This not only includes the exterior and roof but also internal regions like hallways and elevators.
The cost of this master policy is divided amongst all the unit owners in the form of recurring fees. There are three main classifications of condo master insurance policy:
- Bare walls are the most limited policy of master insurance that covers the structure and most of the furnishings and fixtures in common areas. Furthermore, it covers properties that are collectively owned by the association.
- Single entity includes everything in the bare walls package but extends to built-in properties like fixtures.
- All-in coverage covers all property under the ownership of the condo association and part of the building's structure.
Depending on the master insurance policy implemented by your condo association, you will pay more or fewer fees. You should always reach out directly to them for a copy of the declaration, which details what is covered under the master policy.
Finally, if you have vacated the condominium unit for an extended time beyond 30 days, your policy may not provide coverage for damages occurring during this period.Â
Insurers look at vacant, unoccupied properties as a greater risk since there is a higher chance of break-ins, and the fact that it takes a long time to address issues.
How to Save on Commercial Condo Unit Owners Insurance
Commercial condo unit owners insurance, like most types of property insurance, can be a significant investment. But that cost exists for a reason — to protect your unit and your business from financial loss in the event of a disaster.
Fortunately, policy prices vary between providers, and there are several smart ways to reduce your premium. Here are some of the best ways to save on condo unit owners insurance:
1. Raise Your Deductible
Your deductible is the amount you pay out-of-pocket before your insurance kicks in. The higher your deductible, the lower your monthly premium.
If you can afford to increase your deductible beyond the typical $1,000 minimum, you could significantly lower your annual insurance costs.
2. Improve Your Unit’s Disaster Resilience
Making your condo unit more resistant to damage can also help lower your premium — especially if you're in an area prone to natural disasters.
Examples include:
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Installing shatterproof windows or storm shutters
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Reinforcing your roof or retrofitting for earthquake resistance
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Updating electrical, heating, or plumbing systems to reduce fire and water damage risk
Insurers often reward proactive risk reduction with lower rates.
3. Look Into Group Coverage Options
Your employer, business association, or alumni group may offer access to group insurance plans, sometimes at discounted rates.
Before enrolling, compare the group plan to other offers — even discounted policies should be weighed against broader market options to ensure you're getting the best value.
4. Leverage Loyalty Discounts
If you’ve been with the same insurer for a number of years, ask about loyalty discounts. Many providers reward long-term customers with reduced premiums.
That said, it’s always smart to shop around and compare your current rate with others — loyalty shouldn’t cost you savings.
5. Compare Rates with G&G Independent Insurance
One of the easiest ways to save is by comparing rates from multiple providers — and that’s where we come in.
Use G&G Independent Insurance to explore the best commercial condo unit owners insurance rates. Get in touch today for a quote or speak with one of our specialists to find coverage that fits your needs and budget.
Frequently Asked Questions
What is Commercial Condo Unit Owners Insurance?
Commercial condo unit owners insurance (often referred to as an HO6 policy) is designed to protect the interior of your individual unit, including walls, fixtures, and improvements. It also typically includes liability coverage and loss of use protection if your unit becomes uninhabitable due to a covered event.
Is commercial condo insurance required?
While not always legally required, it’s often mandated by lenders or condo associations. Even if it’s not required, having a policy is highly recommended to protect your business property and avoid unexpected costs from damage or liability claims.
What does a commercial condo insurance policy typically cover?
Most policies include:
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Interior structure (walls, floors, built-in fixtures)
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Business personal property inside the unit
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Liability coverage if someone is injured on your premises
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Loss of income or use if you can’t operate due to a covered loss
Coverage may vary, so it’s important to review your policy or speak with an agent.
What’s the difference between commercial condo insurance and the condo association’s master policy?
The condo association’s master policy usually covers the building’s exterior and common areas (hallways, elevators, etc.). Your unit owner’s policy covers everything within your walls — like buildouts, business property, and liability.
This is why commercial condo unit owners still need their own policy, even if there’s a master policy in place.
Can I save money on my commercial condo insurance?
Yes! You can often reduce your premium by:
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Raising your deductible
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Installing safety features (like storm shutters or upgraded plumbing)
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Exploring group insurance plans
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Asking about loyalty discounts
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Comparing rates through an independent agency like G&G Insurance
Does commercial condo insurance cover flooding or earthquakes?
Typically, no — standard commercial condo policies do not cover natural disasters like floods or earthquakes. You’ll likely need to purchase separate policies for those risks, depending on your location.
How do I get a quote?
You can call us directly to speak with an experienced agent, or use our online tools to request a personalized quote. At G&G Independent Insurance, we help you compare policies from top providers to find the best fit for your property and budget.
Prefer to Speak with a Licensed Insurance Agent?
We’re here to help. Our friendly, knowledgeable independent insurance agents are happy to answer all your questions about business property insurance, including tailored coverage options for commercial condo unit owners.
Give us a call today — let’s find the right protection for your property.
