Condominium Insurance Info
Essentially a condo is a home that is located within a building or development with other owned units. If you own and live in a condo unit then you need to purchase condo insurance.
This kind of insurance has similarities to other property and casualty types of coverage. It is designed to protect your belongings and, in some instances, a part of the structure in which you live, from damage or loss by any named perils such as wind storms, kitchen fires, intense rain, theft, etc.
Condo insurance is open for all who own a condo or townhome. Should you reside in your owned condo unit, you will need to obtain insurance to protect your personal items and even such things as appliances, fixtures, furniture, art, you name it. If you are a condo owner but rent it to a tenant, you may need to obtain both condominium and landlord insurance.
Should you have damages from a covered event, you next need to contact your insurance company. An adjuster will usually pay a visit to determine the damage and the validity of the claim. Once the claim is deemed legitimate, you are usually then sent a check to compensate you for any losses. If your unit is deemed uninhabitable, (with loss of use coverage in your policy) you can receive compensation from your insurer to pay for the costs of living elsewhere.
The kind and the level of condo insurance you need will usually be dependent upon the master policy of the HOA (home owner’s association). These can sometimes cover everything that comes preinstalled in the unit, including plumbing, electric and even appliances. In cases such as these, a condo policy would only need to focus on personal items. If the master policy is of the “bare-walls” variety, then your own condo insurance policy will need to include everything within the condo, including the plumbing, electric, rugs and carpet, appliances, furniture and so on.
The peace of mind inherent in carrying condo insurance is perhaps the biggest benefit. Just knowing that you are protected from losses resulting from some kind of covered event is priceless. This coverage can also protect you if someone is injured in your unit, which could be a financial life-saver.