A condominium is a large investment. You should understand the financial obligations if you are buying a condominium. Condo insurance is something to consider, as buying a condo is a huge investment.
Condo Insurance Details
Condo insurance is for condominium owners who want extra protection for their investment. It is similar to renter’s insurance. This type of insurance covers personal property and offers liability. Condo insurance is also a safety net that kicks in when the condominium association’s policy coverage ends.
It is important to understand that the condominium association’s insurance policy does not cover your personal space. The policy owned by the association is for public space – such as indoor and outdoor common areas. Your individual living space is your responsibility. You must have insurance to cover your own area.
Having individual condo insurance protects you against financial loss, damages, burglary or other unexpected mishaps that occur in your unit. Without individual condo insurance, you have to pay out-of-pocket for any expenses.
Types of Coverage
You should understand the type of coverage you are getting when you purchase a condo insurance policy. Coverage of personal belongings help repair or replace personal items that are stolen or damaged. You should also have structural coverage, that is protection for the inside of your condo, including the floors, fixtures, and appliances. Sometimes there is coverage for improvements to your condo, such as renovating countertops.
Condo insurance is also a good idea because of liability protection. If you are responsible for someone being hurt inside your unit, then they might sue you for personal injury. With condo insurance, the insurance company will help with the lawsuit. The insurance company will pay damages, depending on the limits of the policy.
An individual condo insurance policy can also help in case the living area becomes unlivable. In most cases, the policy would help pay for living arrangements until the condo is renovated or repaired.