No matter if you’re buying your first condo now or have already been a long-time condo owner, you will without a doubt be shopping for a great condo insurance policy at some point. It is important to note that the majority of banks which conduct residential lending will require a condo owner to have coverage for as long he or she is paying off the outstanding mortgage balance. Also, there are those wise ones who will not only buy due to a legal requirement, but also because of the terrific benefits this coverage can provide.
With condominium insurance there are some notable differences from the regular kind of homeowners’ insurance. (After all condo units are different from single-family homes.) Though the condo association or HOA usually will have some insurance that protects its members, it remains important to keep in mind that the extent of coverage on the HOA policy is limited and it is wise to look for the additional protection that condo insurance affords you. With HOA coverage, the protection usually ends beyond the exterior walls, leaving you on the hook for any interior walls, fixtures and appliances, cabinetry, and the personal property within (and in some cases, without). The HOA in reality only protects the association from liability for accident or injury but does very little as far as protecting the individual condo owner.
Condominium owner insurance is created especially to protect YOU, the condo owner, from the many possible losses associated with ownership and not covered by the HOA insurance. In situations in which the homeowner (but not all members of the HOA) is found liable for damages, this is the policy that can help. For example, if a fire starts in your kitchen and ends up also damaging your neighbor’s unit, this insurance helps to pay for the damage.
Condo insurance is here to help protect the condo owner from losses due to fire, theft, wind, water damage and other potential losses. Should you be faced with a loss, you will likely need to file a claim with both your condo insurance company and the HOA’s company too, as some claims will surely include damage to both interior and exterior areas. It is important to keep in mind that these policies don’t generally cover flood and earthquakes- Give us a call today to find out more.
If you live in and own a condo, it is important to learn more about the kinds of coverage available to you. Note the minimum requirements in place and also ponder how the offered optional coverage may benefit you. You could end up quite relieved that you went to the trouble and expense for this important coverage.