Good Condo Insurance Coverage
If you are the type of person who enjoys the freedoms of apartment living but would prefer to own as opposed to renting, then a condo dwelling might just be the perfect choice. However, just like the ownership of a typical single family home, you will want and perhaps need to protect the investment with good condominium insurance coverage.
What is Condo Insurance?
Condominium insurance does have some notable differences from regular homeowners’ insurance, just as is a condo itself different from a single-family home. The condo owners’ association (or HOA) will normally already have some insurance protection already in effect for its members. It is vital to know the extent of coverage you have with the HOA policy previously to shopping for your own coverage for your condo. With the HOA policy, the coverage will usually stop beyond the exterior walls. You are then responsible for what is on the interior, which includes the walls themselves, any fixtures and appliances, cabinets, and, of course, all your personal belongings. The HOA basically protects the association members from liability for accidents or injuries but will usually do little as far as protecting each condo owner.
What does it do?
Condominium owner insurance was designed to protect the condo owner from potential losses not covered by the HOA insurance. Owned property is what is protected in this type of policy. Should the condo homeowner be found individually liable for any damages, this is the policy that will help. For instance, if a blaze starts in your unit but also causes fire or smoke damage to a neighbor’s unit, this insurance will compensate.
How Condo Owner Insurance Function?
Condo insurance protects the condo owner from losses due to various perils, such as wind, fire, theft, water damage and other covered losses. Should you be faced with loss, you then file a claim with both your condo insurance company and, most likely, the HOA’s company as well. This is due to the fact that claims can often include damage to both interior and exterior areas. Remember that these policies don’t cover floods and earthquakes and, therefore, separate coverage will be needed to be purchased for such protections.
Types of Policies
The kind of condo insurance policy you choose will depend upon the policy that the building owner or HOA has in place. A bare walls condo policy is the kind of protection that essentially ends at your door. In other words, the responsibility falls at your feet to insure everything within your condo walls, including the walls themselves, and fixtures, appliances, flooring, etc. If the owner of the building or the HOA has what is known as an “all-in policy,” then you will likely just need to cover your own belongings and your various appliances.
Arguably, the biggest benefit of carrying condominium insurance is the peace of mind in knowing that what you own is protected against various perils and losses. Another still important plus is the personal liability coverage you will have, which will help you if, for instance, a pet were to bite someone or if an individual were injured while visiting your condo. Call an insurance pro today to find out more!