What Is Condo Insurance?
Insurance is an absolute priority to protect your assets. Investing in a condo is a dream for many, but you still need to make sure yours is insured. Apartment insurance is one of the mandatory requirements for your apartment. This is similar to home insurance and usually covers the interior of the device as well as your belongings. Insurance can also cover bodily injury or property damage to third parties in your home. Before you decide what level of insurance you need, check how much coverage you get from your homeowner’s association policy.
What does condo insurance cover?
One of the main features of condo ownership is the homeowners association. This means that all the burdens that come with homeownership are not on your shoulders. When you become part of an HOA, you pay a membership fee. This is usually clearly stated before the transaction is completed. This fee helps with the maintenance of common areas, maintenance of all common areas, and course the insurance that covers the building and common areas. Regardless of the scope of an HOA policy, there are a few key areas that will always be covered. Common areas of the facility (gyms, pools, playgrounds, common areas, corridors, entrances) as well as the structure of the building will be insured. Because each policy has its unique inclusions and exclusions, be sure to ask about your general condo policy before purchasing condo insurance. While you still need condo insurance to cover your home ownership and liability, your insurance should be used in conjunction with your general HOA policy.
What does homeowners insurance cover?
Your home insurance may cover a few things. It depends on your needs. Areas that may apply to your policy:
- Structural: This would include the device itself as well as any improvements made after
- Purchase: The amount covered here depends on the amount covered under the HOA policy.
- Personal belongings: Your belongings, such as furniture, clothes, or electronics, are covered in case of loss, theft, or natural disasters.
- Property loss: While you are paid to replace your personal belongings, you may have to move if your apartment becomes uninhabitable. Loss of use insurance covers all costs associated with finding temporary housing.
- Medical expenses: If someone else in your apartment is injured, your policy may cover some medical expenses. This coverage covers the injured party regardless of who is at fault.
- Liability: Covers expenses caused by injury to someone on your property or damage to your neighbor’s property. This coverage usually covers medical and/or legal expenses. Coverage is up to you. Make sure you’re fully covered if you ever need it.
What are Betterments and Improvements?
If you plan to make your condo your own, make sure your condo insurance covers betterments and improvements. If you plan to add value to your condo, you’ll want to make sure your policy covers this investment. Improvements and betterments can include:
- Floors
- Cabinets
- Electrical devices
- Fixtures
- Appliances
- Built-in furniture
Some HOA policies may cover betterments and improvements, but this is unlikely. General policies may cover what was inside the unit before the renovation, possibly nothing more than the exterior of the building/common areas. It is very important to ensure that the value of your flat and the contents of your policy indicate the improvements you have made.
If you’re paying off a mortgage, your financial institution may stipulate that your home insurance covers your entire property, including any improvements. Also, condo insurance is mandatory and you need to make sure your personal belongings, improvements, and liabilities are covered.
Let us help you decide which policy best suits your individual needs today with the help of our trusted insurance solution partners.
