Buying a condo home can be a terrific type of home-ownership because condominiums generally cost far less than a typical single-family home and will also require less maintenance on the part of the homeowner. This all being said, buying a condo home will likely be your biggest investment, so it makes sense to protect it with good condo insurance coverage.
Condo insurance is property insurance designed specifically for owners of condominiums. Most insurance coverages held by HOAs do not cover individual owners’ personal belongings, nor will it fix items within the walls of the unit, such as plumbing and electric, HVAC, appliances and floors. Condo policies will typically cover these things and provide you with personal liability protection, as well.
Good condo insurance coverage is designed for those who own and live in a condo unit. If you rent out your condo to or from someone else, you will need different specialized coverage.
How it Works
Condo coverage functions much the same as other kinds of property insurance, such as homeowners or renters’ insurance. If your condo residence is damaged or destroyed by a covered peril, for instance, a fire or a severe weather event, a claim is made to your insurance provider. Once an adjuster has paid you a visit and determined the extent of damage, the provider will then pay the homeowner, less the agreed upon deductible and not to exceed the policy limit. If you are the recipient of a personal liability claim, your insurer will also assist you in negotiating and paying a settlement or, if necessary, defend you in court.
Types of Coverage
There are really just two types of condo coverage. The kind you choose will likely depend on the building owner or HOA policy details. If the existing building policy is an ‘all-in’ policy, then the condo owner need only purchase a condo policy that covers his or her own personal belongings. On the other hand, if it is a ‘bare-walls’ type of coverage which only covers the exterior, then you will need a policy that also protects the walls, floors, appliances and fixtures, as well as your other belongings.
The biggest benefit of condo insurance is the peace of mind the comes from knowing that come what may, your personal belongings and anything else in your dwelling is protected.