Condo associations typically have basic coverage for certain portions of the complex, namely the exterior. The homeowner is responsible for the items housed within the unit, and must insure those items independently in a policy of their own.
What is it?
Condo insurance is a form of insurance designed to provide protection against, lawsuits, theft, fire and other forms of damage. Provisions for personal property and liability are included in either policy. The structure of a typical policy is similar to that of a renters policy.
Who is it for?
This type of protection is recommended for every condo owner. Similar policies may fall short in failing to not offer protection for water damage, walls or slip and fall accidents. This can leave condo owners in the lurch. Condo insurance takes into account the comprehensive needs of the property owner.
How does it work?
Every condo association has whats called a master policy or something like an HOA policy. This type of coverage is extended to the community areas utilized by all residents. It also includes coverage for the grounds. Personal possessions like appliances are covered. Loss if the unit is burglarized is covered. Fire or water damage is also covered. Like any other insurance policy, a claim must be filed with the company. Any form of damage or loss occurring outside of a specific unity requires a claim be filed through the master policy.
What are the major benefits of it?
Coverage protects against loss from fire to vandalism. It also provides coverage for alternative living arrangements if the home becomes uninhabitable. The costs for replacing items damages are covered and additional coverage options are available to suit ones lifestyle.
What are the different types of coverage options available?
The personal belongings option covers stolen or damaged goods with the replacement cost value. The interior option covers flooring, walls, countertops and lighting within the home. The improvement option covers renovations and upgrades for a property. The liability option covers an accident resulting in injury from a visitor if the event happens within the home. The loss assessment option protects against damages assessed to you by the homeowner association if an incident occurs affect a community area. The identity theft option covers costs associated credit repair and other services required to restore someones name. The scheduled property option covers items like jewelry. The loss of use option covers the rental value of the property if the residence is uninhabitable.
Condo coverage is recommended for every property owner. The master policy doesnt cover anything that occurs within the unit, and this leaves residents exposed to certain risks. In the event of a liability claim or a potential lawsuit, it is best to have protection in place.