If you own a condominium, you may be wondering what type of insurance best fits your needs. When you own a condo, you own your unit, but you most likely share common areas with other condo owners in your building. Fortunately, condo insurance is available for owners like you.
What is it?
In practice, condo insurance is very similar to renter’s insurance. Your building should have a master insurance policy that covers common elements like the roof, shared utilities, and walkways. As a condo owner, you own everything inside your unit—from your personal belongings to the appliances, carpets, and floors. Condominium insurance covers those items that you own, and it also covers your personal liability in case someone is injured inside your home. Some policies may also contain additional provisions for things like living expenses in case a fire or accident causes you to relocate. Ask your insurance agent about specific coverage items under your policy.
What are the different types of coverage?
For the types of policies mentioned above, you will most likely be covered for loss of property due to accident or theft. Depending on your individual policy and your building’s master policy, your insurance may or may not cover special assessments from your condo association or damage from certain natural disasters like hurricanes or tornadoes. Finally, you may be able to purchase additional insurance coverage for conditions like toxic mold.
How does it work?
Insurance on your condominium works like most other home insurance policies. Your policy documents spell out general coverage areas, and you will also have the opportunity to declare certain valuable items or purchase additional coverage if you have expensive equipment or items in your home. Your policy will also specify a deductible, which is usually anywhere from $100 to $1000. When you file a claim on your policy, the deductible will be subtracted from any insurance payout.
What are the benefits of condominium insurance?
The biggest benefit of this insurance is peace of mind. While your building’s master policy may cover some limited structural aspects of your home, you could be left with a large price tag if you are burglarized or experience a fire. Moreover, if a guest is injured while visiting you, you could be held responsible for their medical bills. Insuring your condominium protects you in these worst-case scenarios, and this type of insurance is very cost effective, with the monthly cost on a par with renter’s insurance.