Condo insurance gives people property coverage and helps protect against claims of liability. Most of these policies take care of the actual unit while a master policy for the condo association covers other common areas.

It is important to note that condo insurance does not cover everything, so you will need to do research about what additional coverage might be required after taking out a policy.

In general, the condominium  association policy will cover the outside structure, roofs, walls, and elevators in different common areas. This type of insurance policy is split up across all condo owners and is paid through fees. This means damage of the exterior of a condo building would be the responsibility of the wider association and not individual owners.

Insurance for condos usually comes in three different types. Bare walls coverage is a limited policy that covers collectively owned property and structural items in common areas. Single entity coverage is usually seen as an extension of bare walls and offers coverage for items inside of individual condos. The third, all-in coverage, covers all property that is part of the entire structure and also accounts for any improvements and additions. This type of policy means an individual owner would just have to buy more coverage (if needed) for their own personal property.

As a result, it is important to get a copy of a condo association’s declaration page to get an understanding about what type of a policy the association has and what it actually covers.

Many associations will require owners to have some sort of insurance policy or institute minimum coverage limits even if insurance is not required by law. It is good to get familiar with all types of condo coverage because some features could actually be covered by both your insurance and an association’s policy. Knowing the coverage limits for each lets you understand if damage could fall under a master policy, or if you would have to file a claim through your own coverage.

When it comes time to choose condo insurance for a specific unit, be sure to get a clear value of the property. Insurance policies will pay up to coverage limits and most people are going to want a policy higher than the replacement cost value to be sure they can get all available compensation if it is needed.

Otherwise, be sure to account for the financial costs concerning changes or renovations that you have made. If you decide to re-do a condo’s kitchen after living there for a few years, you should adjust your insurance coverage since the entire unit will now have a different value.

Condo insurance does not cover damages from earthquakes, floods, and sinkholes. You will need to buy more coverage if the region you are in is at risk for these types of natural disasters. A lot of policies are not going to cover damages if the condo was uninhabited for a specific time.

Click here to learn why it’s important to review policies every year!

Most insurers automatically assume uninhabited condos are riskier because the propensity for break-ins and theft is higher. This becomes a problem when you are not around because others might not be checking up on the property or might not know that there was anything wrong in the first place.

If you are planning to be away from your unit for more than a few weeks, take out vacant condo insurance to make sure you still have protection and coverage.

Do you have a question about how to obtain condominium insurance? Click here to contact Partners Direct Insurance Services today!

Courtesy of Cuselleration