Condo insurance is available to anyone living in a condominium. It is different than traditional homeowner’s insurance because the owner does not own the entire building.
Who needs condo insurance?
Insurance for condos is designed for anyone who owns a condo. Regardless of city, location, or building, the condo needs to be covered. It will ensure that if there is a problem, the owner can file a claim with the insurance company.
Many people assume that if they live in a condo, they don’t need to worry about insurance. While the owner of the entire building has insurance in place, it is to provide coverage for the building itself. If there is a fire, for example, their insurance would cover damage to the building. It would not cover the loss of any items inside the condo, however.
Having an insurance policy ensures that repairs and replacements aren’t coming out of the pocket of the owner. Insurance would pay for most items, with the exception of the deductible, which must first be met.
What are the coverage options?
It’s important to review the coverage options available for insurance. Basic policies will provide coverage for all personal belongings. It’s also critical to have liability coverage to provide added financial protection.
For people who have a large amount of valuable items, such as jewelry or artwork, there are riders that can be obtained for an insurance policy. High-value riders will provide sufficient financial protection in the event that there is a loss or theft.
Further, if someone sues the owner of the condo for injury, there are riders that will provide protection against virtually every possible scenario.
Every condo owner should have insurance to protect their home and what’s inside of it. By taking the time to review the different coverage options, it’s easier to enjoy peace of mind throughout the year.
Exploring the Benefits of Condo Insurance
Choosing to purchase a condo (and specialized condo insurance) is important if you want to enjoy both the perks of home ownership but without the hassle and time needed for caring for a single-family home, such as general maintenance for exterior areas and the upkeep of areas that, with a condo building, all residents enjoy that are handled by the HOA (or Condo Association). Normally, condo associations will carry their own master policy, which does not cover any of a condo homeowner’s personal items, interior fixtures and appliances and so on. Finding the proper coverage to meet your needs is an important decision as a condo owner. This is so you can financially protect all that has been accumulated over the years and enjoy the peace of mind in knowing that you are protected in this and many other ways.
HOA (Condo Association) Master Policies
The condo association or HOA will usually have a master policy in effect that safeguards the building owner’s interest by covering the structure, its exterior features and the common shared areas. The common areas will often be where the swimming pools and a gym are located, any common shared decks and patios, elevator and boiler rooms, rooftops and so on. Some master policies will also cover a condo’s floors, ceilings, and bare walls. Therefore, it is wise for the homeowner to familiarize him or herself with all the details of the associations’ agreement and the existing policy coverage prior to purchasing good condo insurance coverage. This will help in knowing that you have the proper insurance policy that will protect your personal property, any liability exposure and the interior of the condo home. Condo coverage can sometimes be offered that protects the condo homeowner from water damage, injuries happening inside the unit, (and other forms of liability exposure), burglary, vandalism, and more.
Condominium insurance protection extends coverage for personal liability, which gives protection to a homeowner should a person be hurt in the condo unit and then files a lawsuit. The personal property component of this coverage protects a variety of items found in one’s condo home. The policyholders can also enjoy discounts including multi-item coverage price cuts, Internet discounts, automatic pay pricing, loyalty pricing deals, and relatively inexpensive premiums by choosing higher deductibles.
Good condo insurance policies are provided by insurance companies everywhere in the USA and with HOAs as well. It is recommended that condo owners check into repair and replacement costs of all their personal items before purchasing a policy. It is also important to be sure that you have enough coverage to handle costs that result from any accidents and other forms of covered losses. Talk to your insurance professional today for more information.