The Basics of Condo Insurance
Want to enjoy the perks that come with building equity and getting tax incentives, without the pesky yard work and pool maintenance of owning a house? A condominium might be the perfect solution for you! And just like with any large investment, it’s important to consider condo insurance while you begin the hunt for a new home.
Much like home insurance, condo insurance
protects your property and liability risks from a variety of circumstances, including theft, vandalism, severe weather and more. Standard condo insurance policies cover the following:
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Building and personal property : Covers building property—cabinets, fixtures, walls and more—and personal property—furniture, clothing, appliances and more—if it’s damaged, lost or stolen due to a covered event.
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Personal liability : Covers the medical and/or legal expenses associated with a visitor getting injured on your property, along with the costs of third party property damage.
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Loss of use : Covers the cost of temporary living expenses if a covered loss renders your condo uninhabitable.
While condo insurance is similar to home insurance, there are some key differences. Namely, the role of the homeowners association. The HOA fee you pay as a condo owner not only covers common areas like the pool, but it also covers (in most cases) the exterior of the building, including the roof and foundation. Because the HOA covers these items, condo insurance is often less expensive than home insurance. However, flood and earthquake is excluded from standard policies and must be purchased separately.
Your independent insurance agent can help you find the right condo coverage for your needs. Be sure to ask about discounts, particularly if you’re planning to bundle in your auto insurance and/or if your condo is equipped with a security alarm.
