Why Condo Insurance?
For most people, the largest investment they will undertake is the purchase of a home. Knowing this, it makes perfect sense to safeguard this investment from such risks as weather damage, burglary, vandalism, and a number of other types of potential perils, by acquiring good condo insurance coverage. Most also don’t realize that condo insurance is different from renters or homeowner’s coverage. A big variance is in the relationship between individual condo and condo corporation (or HOA) coverage. The condo corporation and the condo homeowner coverage work synergistically in ensuring that all interests are protected, both the unit owner and the organization. Essentially the condo corporation protects the building while the unit owner is concerned with his or her interior areas of the individual condo.
Most quality insurance companies have policies that range in what they may offer so as to satisfy various preferences ad needs. The fact is, most condo homeowners are not aware of what is protected under these policies and for what each owner is ultimately personally responsible.
Some Coverage Types
Liability: This kind of coverage safeguards the condo owner from litigation arising from anything occurring on the premises for which he or she could be considered liable. For example, if a water heater breaks and floods adjacent units, the homeowner can be held responsible for any damages as a result.
Personal Property: This is what protects one investment in any moveable items in the condo, such as furniture, appliances and electronics. It’s an owner’s responsibility to draw up an estimate of the value of his or her personal property items to obtain the proper policy limit. Most insurance providers utilize replacement cost valuation, which is the amount it would cost one to replace lost or damaged covered items.
Improvements & Betterments: This helps in compensation for features that have been improved in the individual unit. The amount is determined by research into the normal expense of upgrades made that are in addition to the cost of a basic condo home.
Living Expenses: Should an aspect of the condo, such as a bathroom, become unusable or some kind of damage or malfunction at least renders it reasonably unusable, this coverage will compensate for additional living costs away from home while it’s under repair.
Loss Assessment: Should the property owner experience some form of liability and the condo corporation’s insurance coverage is not enough to provide adequate coverage, the loss assessment aspect helps fill in the gaps.