What You Need to Know About Condo Insurance

Posted by on Sep 13, 2016

What You Need to Know About Condo Insurance

As a homeowner, obtaining a good home insurance policy that protects your assets is one of the essential costs related to purchasing a home. But if you own a condo there may be some additional considerations you need to be aware of when selecting the policy that’s right for you. Here’s what you need to know about condo insurance.

Content Coverage

Living in a gated community or secured building, as most condo complexes are, may give you a false sense of security. If your condo insurance does not cover your unit’s contents from theft and other damage you could be leaving a huge gap in your coverage. Also, if you own valuable items such as jewelry, antiques or firearms your content coverage may not protect the full value of these items and an additional rider may be necessary.

Condo Association Coverage

Another issue to consider is whether your Condo Association has blanket coverage that will protect you from damages that may be caused by other condo owners who do not have liability insurance, or have limited coverage. Since condo owners pay fees that include a number of shared costs, such as property maintenance and some utilities, insurance should be offered by your Condo Association to protect you in these cases. If yours does not, you may want to check out ways to include it.  In most cases this type of shared coverage will cost each owner less than individual liability insurance and will keep all condo owners protected.

Ownership Issues

Since the actual property ownership of condos includes both private and shared property, condo insurance must cover both. In the case of shared property, the major concern is liability insurance that will cover any damage that may be caused by your negligence or an accident that would damage shared property or the property of another condo owner.

Earthquake Coverage

It’s important to know whether or not your association has an earthquake policy, what the deductible is, what the policy covers and what it doesn’t cover. Request a copy of the policy annually from the association’s management company.

Lender Requirements

Most lenders have specific requirements when it comes to condo insurance and will periodically request a copy of both the blanket coverage and your individual policy. It’s important to comply with their request and provide the proof they’re asking for, otherwise they might place coverage for you which is quite costly.

These are the basics of what you need to know about condo insurance. For more information or to receive a no-obligation quote, give us a call today – 661-235-5885.