If you have recently bought a condo you are mostly likely looking for condo insurance. A condo owner will often look into homeowner’s insurance, which is similar but not the same thing. If you own a condominium, you will need condo insurance. Condo insurance will cover a number of different items but mostly it will cover you if you are found responsible for any property damages and or bodily injuries. To better understand condo insurance, InsureWise would like to share more about condo insurance.
Condo Association Master Insurance Policy
Before you begin your search for condo insurance, first check what is already covered in your condo association’s master policy or sometimes called an HOA policy. The master policy should cover the building common areas such as the recreation room, patios, gym, pools or spa areas. The master policy should also cover the interior structure of your unit.
What is Condo Insurance?
Similar to homeowner’s insurance, condo insurance is a policy designed to protect the condo owners. A condo policy is designed to help pay for repair needs in your condo. Some examples of how condo insurance can help, is if a fire occurs and there is fire damage that needs to be repaired, the condo insurance should pay for it. If your condo was broken into and items were stolen, the condo insurance can help to pay for the replacements.
What Should I Look for when Buying Condo Insurance?
When shopping for condo insurance there are a few things you will want to make sure is part of the coverage plan, such as:
Dwelling Coverage – Dwelling coverage covers the structure of the condo and even the upgrades you make such as better floors, appliances and fixtures. When seeking to extend the dwelling coverage, make sure to have your master policy and add to it, do not double on coverage.
Personal Property Coverage – Make sure to have personal property coverage as part of your condo insurance policy. Personal property coverage will help pay the cost of electronica, jewelry, furniture, appliances, and other personal items if they are stolen or even damaged.
Personal Liability Coverage – Personal liability coverage will help protect the condo owner if another person was injured while in your condo. You may think this coverage isn’t necessary but you will never know who may walk through your door or if a window air conditioner unit suddenly falls from the window. There are a number of situations that can occur and you will want to make sure you are protected.
Loss of Use Coverage – If for some reason you cannot live in your condo unit due to mold, major renovation or major repairs, loss of use coverage will cover the cost for you to live in a hotel. You never know when the condo may not be livable, and it can take months before you can return to your condo, if that is the case you will want the financial cost covered while you live elsewhere.
Loss Assessment Coverage – If the condo shares a space or wall with another dwelling or the exterior wall has been damaged the cost to repair the damage will be much higher. If you find your master policy insurance was expended and yet more money is needed, loss of assessment coverage will cover the rest.