Condo Owners Insurance: What You Need To Know

A condominium and a house are two different types of dwellings that need different types of insurance. When you insure a house, the building and your other possessions on the property are covered by your home insurance policy. In condo insurance, you only insure the possessions inside your home, like your appliances, interior decor, and other items. You don’t have to include the building, where your condo unit is built, and other structures that you share with the other unit owners. There areas are covered by your condo association’s policy.

Condo Owners Insurance

Condo owner insurance is an important part of your ownership since this will give your possessions protection against damages. The insurance that your condo association can provide stops right outside your door. Having a condo owner insurance means your personal belongings are covered if disaster strikes. It can also give you coverage for personal liability, living allowance if you’ll lose your unit to fire, theft and loss of personal items as stated in your insurance policy.

When you buy condo owner insurance, you need to make sure that it will give you sufficient coverage. First, look into the areas of the building that are covered by your master policy. Most likely, your condo association’s policy falls into the category of commercial insurance. A deductible is often applied to this type of insurance. In the event that an accident affects the complex, the deductible will be shared by the owners. Deductibles can reach up to several thousand dollars. It is important that you ask about this before getting your own condo owner insurance.

After assessing the areas that are not covered by your condo association’s insurance, you need to evaluate your own needs. If some of your neighbors are doing renovations, take note of the current value of their latest furniture, appliances, or the amount spent on the entire project. This will help you establish a coverage that you feel is appropriate for you. For interior structures, you may want to get a coverage that is worth half their market price.

If your condo building is located in an area that is always exposed to flooding, earthquake, and harsh wind, you might as well get coverage for damages that might be caused by these natural disasters. Never assume that your current policy will give you protection against these elements. Don’t be left helpless when a disaster unexpectedly strikes. Look into your policy and talk to your insurance provider about your options.

By Matt Reynolds - Google+

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