Whether you have been living in one for years or just purchasing one, you understand that your condominium is a huge investment. If you don’t protect that investment, you could lose it all. That is why you want to purchase some type of condo insurance.
What is Condo Insurance?
While most people assume that condo insurance is much like the typical homeowner’s insurance policy, this is not the case. A condo policy is specially designed to offer the protection that a condominium owner needs. It is somewhat similar to renter’s insurance, as it covers personal property and offers liability coverage, too. It is important that you consult with your condominium association to see what extra coverage you will need above what they have.
How Does Condo Insurance Work?
The workings of condo insurance works as a sort of supplement to the homeowner’s association insurance. The HOA policy is in effect when you make your purchase, but it does not cover your personal belongings or any upgrades that you may make to the condo itself, including appliances, etc. A condo insurance policy and HOA policy work hand in hand to provide your family protection in case of theft, damage, loss, etc. Your insurance agent will be able to help you determine what coverage that you need.
You will have several types of insurance coverage available to you to help you to cover your condominium. One such insurance type is coverage for only your personal belongings. This personal belongings policy will repair or replace your belongings if they are damaged or stolen. Another type of coverage is known as “inner structure” coverage that will cover the furnishings inside the condo, including fixtures, cabinets, countertops, flooring, etc. This is for the things that are not covered by your HOA policy. Coverage may also be available to help in making improvements to your condominium and there is also “loss assessment” coverage for any damages that the HOA may find you at fault of. One of the more important supplemental insurance types is liability coverage, which will protect you financially if someone is injured or killed inside your condo.
By talking to your insurance agent, you will be able to determine the right condo insurance coverage for you to supplement your HOA coverage and give you the best bang for your buck.