The Need to Know Guide for Buying Condo Insurance

It isn’t until it’s too late that most peoplefind out that their condominium association’s blanket insurance policy is nogood for them.  Condo associationsgenerally have eno…

It isn’t until it’s too late that most peoplefind out that their condominium association’s blanket insurance policy is nogood for them.  Condo associationsgenerally have enough coverage to protect the assets of the building and that’sit.  They generally do not include yourpersonal belongings or your yard/garden space (if you have this).  Get a copy of their policy and go over itwith a professional and then get your own coverage to fill in the gaps that arelikely present in the blanket coverage.

 

The Essentials of Condo Insurance

 

Again, the condominium association policy isprobably only going to cover structural things, like the buildings, commongrounds (lobby, pool area), and (possibly) any furniture and décor containedwithin them.  Before purchasing a condoit is wise to ask the association about the insurance coverage they alreadyhave and what it covers and if it carries any personal liability outside thecommon areas, like within your condo unit. The odds are going to be in favor of the association’s insurancecovering only publicly shared areas and anything within your unit will have tobe covered, separately, by you.

 

Liability and Personal Property Insurance

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Any insurance policy you buy should havecoverage for all of your belongings inside the condo.  Take stock of everything you own, includingthe kitchen sink.  OK, maybe not thesink, but your appliances, furniture, clothes, jewelry, and so on.  As long as your belongings are documentedwith your insurer you should be covered in the event they need to be replaced –up to a point.  Usually the policy willcover fire damage, but you should check for water damage coverage, too.

 

Water damage from burst pipes, backed updrainage, leaky roofs, and the like can cause just as much damage as a fire andthey are actually far more likely to happen than a fire.  As such, insurers tend to not includecoverage for this in a basic policy.  Youalso need to see if the association’s insurance covers property damages forwater in your unit, or if you’re responsible for it.  You may need to get coverage for both replacementof belongings and structural repair. 

 

In addition to not covering water damage, alot of condo association policies don’t cover earthquakes, hurricanes, andother natural disasters.  Frankly, a lotof association policies, when it comes to you and your own protection, aren’tworth the paper they’re printed on.  Besure to find out what the association’s insurance covers and then protectyourself accordingly.

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