Condo Insurance – What to Know
You’ve taken the plunge! You’ve got the keys to your new condominium and you're ready to move in. But are you, your home and your belongings protected? Homeowners buy home insurance to protect their property and assets, condo owners and renters should do the same thing.
Condo insurance can be confusing. More so than the renter’s insurance you had on your first apartment. When it comes to condos, insurance is usually held by both the condo association and each condo unit owner. To make sure you have the right protection for your condo, understand what is covered by your condo association.
Condo Association Coverage
If your building is part of a condo association, the structure itself and common areas may be covered by the association's master policy. These areas may include the boiler room and the roof, as well as hallways and other shared spaces (common rooms, swimming pool, etc.).
The master policy may cover the structure of your own condo unit, including the walls and the floors. It might provide coverage for your unit's original construction and fixtures, or it might cover only bare walls, ceilings and floors.
It's important to understand what protection your condo association has in place so that you know what types of coverage your personal policy should provide.
Keep in mind, there are thousands of condo associations in the U.S., allowing for plenty of variations in insurance policies. A qualified insurance agent can help you navigate your options.
Condo Owner Insurance
Condo insurance generally helps protect your unit against a number of risks, such as fire, theft or vandalism. A typical condo policy offers protection in three areas:
- Building Property Protection – Helps protect the walls of your condo unit and its interior, which could include items such as built-in bookcases and fixtures.
- Personal Liability Coverage – Helps protect you legally if someone is accidentally injured while visiting your condo. It may also help cover your guest's medical bills. Limits are usually associated with condo liability coverage, meaning the policy will only cover up to a certain amount.
- Personal Property Coverage – From your electronics and appliances to clothes and books, there are plenty of personal items in your condo that you may want insured in the event of loss. Personal property is typically not covered by an association's master policy, so condo owners should purchase this individual policy.
Two levels of personal property coverage:
- Actual cash value - a form of protection designed to help you replace your belongings after depreciation is factored in.
- Replacement cost coverage -helps you replace belongings without taking depreciation into consideration.
Condo insurance can be confusing. Having a dedicated agent can make all rhe difference. Contact us today, we take the confusion out of insuring your condo!