Just like most people have home insurance, condo owners should have condo insurance. It is like a homeowner’s policy for someone who owns a condo that is part of a larger community. Incidents such as fire and theft are covered, as well as expenses following accidents in the policyholder’s personal space. This policy can cover household improvements and certain belongings in the condo. Condo insurance is for a specific living area, and does not cover the entire building.
The Basics of Condo Insurance
As with all other types of insurance, condo coverage requires monthly or semi-annual payments to the insurance company. This fee is in exchange for protection against covered damages that may occur in the condo.
Your condo’s building might be governed by a condo association. In that case, there is usually an insurance policy in place that covers the public spaces in the condo. That policy does not cover your personal space. It might cover items in your condo that are owned by the building, such as light fixtures. But mostly you are responsible for your personal belongings and liability if someone is hurt while in your condo. Find out if your condo association has an insurance policy, if so find out what it covers.
Condo Policy Coverage
You should know exactly what is included in your condo insurance. Usually, it covers structures that you own related to the condo, including garages and sheds. These are covered for fire damage, damage from theft, vandalism and possibly floods. These policies also cover medical expenses for someone who is injured inside your condo. There is also coverage for if the person decides to sue.
The biggest advantage of condo insurance is it covers what the condo association’s policy does not. Most associations have an obligation to protect the building and its common areas. However, it’s too expensive to cover each individual condo, so condo owners are advised to have condo insurance for their space.