The 411 on Condo Insurance
A condo varies from a typical single family home in several ways, for instant a condo lacks such aspects as a basement or exterior yard space that’s rarely larger than a smallish patio or balcony. Owners of condos, for instance, are immune from such chores as mowing the front yard lawn or trimming the hedges on the driveway. Accordingly, insurance coverage for condos and that for homeowners also is different. Condo dwellers need only cover the parts of property that they actually own.
One is well served in understanding the ins and outs of good condo insurance so as to know what kind of coverage will best suit one’s needs and their budget.
How Condo Insurance Works
Condominium insurance mostly covers property and the interior structure. Insurance coverage for condos generally comes in two main forms: One is the protection carried by the condo home owner and that which is held by the condo association or HOA, which will also cover common spaces and that which falls outside interior walls. One is well advised to first investigate the condo association coverage levels prior to shopping for your own individual protection.
Condo Association, aka Homeowners Association (HOA) Coverage
For structures that fall under the purview of a condo association, components such as the common areas and the entire structure of the building, they will normally fall under the master policy coverage of the condo association. These areas often include the rooftop, the boiler room and elevator mechanical room, hallways, shared patios, the swimming pool and other common rooms, etc.
In certain cases, the master policy can also protect your condo unit structure components, such as walls and floors. Some policies might even cover your condo’s original fixtures and plumbing and electrical systems, while some might protect bare walls, floors, and ceilings only. Again, comb the details of your association master policy and then determine the kinds of coverage that best work for your personal condo policy plan.
Condo Homeowners Coverage
Condo owners insurance covers your dwelling from certain risks like vandalism, fire, and theft. A normal condo policy will cover the following:
Coverage for the Building Property- This protects your condo unit, its interior walls and decoration, such as built-in fixtures, shelving and the like.
Coverage for Personal Property- this is what protects the condo homeowner’s personal belongings, such as electronics, appliances, wardrobe, collectibles, and other items the policyholder chooses to include fro protection from loss.
Coverage for Personal Liability- This covers one from the consequences of visitor accidental injuries while on the condo premises. This is what kicks in if the owner is the focus of a lawsuit and also can compensate for medical bills for those injured.
Personal Property Coverage Levels
Condo owners can opt for whatever levels of coverage that will meet both their requirements and budgetary limitations. These include the following:
Actual Cash Value- This is the kind of coverage that can help you in replacing personal belongings after depreciation is taken into account.
Replacement Cost Coverage- This pays out for the replacement of belongings without depreciation subtracted from the amount.
When protecting your condo unit with good condo insurance, be sure to purchase adequate coverage for that which is not covered under the HOA master policy. Talk with your agent to discover the proper insurance coverage.