The 411 on Condo Insurance
Condo ownership is pretty similar to living in an apartment, the difference being you own it. There are some differences, and this is certainly true for the kind of insurance one should purchase.
Condo insurance is yet another type of property insurance that, in this case, provides financial protection for those who own and live in a condo. Depending on the amount of coverage you obtain, it might only cover for personal possessions or it could also go further by covering various fixed appliances and the like that live in the condo unit. This coverage can also provide liability protection as well as coverage for one’s loss of use of his or her condo dwelling.
Condominium insurance is designed for those who own and, importantly, also live in their own condo unit. If you rent out your owned dwelling, than you would likely need to look into an alternative form of insurance coverage, such as landlord insurance.
Condo insurance functions similarly to other kinds of property insurance. Should your condo unit be damaged, you are then expected to contact your insurer to begin the claims process. An insurance adjuster will normally then pay visit to look over the damage to ensure that it falls under the coverage and to determine what level of financial liability the insurer will take on. The insurer will then either provide you a check or directly pay for repairs. (This excludes your out-of-pocket costs for your deductible of course.) If the unit is no longer habitable, your insurer might also compensate you for the expense of seeking lodging somewhere else until you can return to your condo home.
Basically, there are two kinds of condo insurance. The type one has will normally depend on the HOA or building owner. Should the HOA have “bare walls” coverage, then that would indicate that nothing inside the unit, like interior walls, floors and fixtures, will be covered. Often one might be well-served in acquiring a rider or additional coverage to protect those things. If the HOA has “all-in” coverage, then the condo owner need only buy a policy that insures personal possessions.
The main plus of buying good condo insurance is the peace of mind inherent in knowing that your unit and the possessions within are covered against loss from such events as fire or weather or even from theft or vandalism. Additional benefits one may obtain are personal liability and lodging coverage (if, again, the condo is rendered uninhabitable).