Things to know about Condo Insurance
A condo is not too different from an apartment, just that you own it as opposed to renting the dwelling. And, due to the fact that you have ownership of the condo, it requires specialized coverage to protect what is likely the largest investment you will ever make. This is why good condo insurance is so important.
Condo Insurance is a kind of coverage that protects the homeowner’s individual unit in which he or she actually lives. The policy will compensate you in covering the costs of any loss to your various personal belongings and appliances and fixtures that live in your unit. Policies vary, though they can often cover the walls and what’s within them, like electrical and plumbing. Additionally, good condo insurance provides a level of personal liability protection to safeguard you from the possibility of any events, like an individual who injures him or herself while in your condo and decides to sue.
What people need it?
Condo insurance, once again, is for a person who not only owns, but also lives in his or her dwelling. If you own the condo building or if you rent out a condo unit that you own, you require a different kind of policy.
How does it function?
Condominium insurance works similarly to other property insurance like homeowners or renters coverage. Should you experience a covered event or accident that results in damage to your condo, like a fire or severe weather, the next step is for you to contact your insurance provider and make a claim. Often an adjuster will then investigate the validity of the claim and to evaluate the damage. Finally, once approved, the insurer will then pay for needed repairs or provide a settlement payment less your deductible contribution. If it’s a claim regarding personal liability, the insurance provider will then provide representation for you to help in any negotiations and, if so needed, for court appearances, etc. This policy can then compensate further, up to the limits of the policy, for a settlement or court judgment amount.
Kinds of policies
The most common types of condo insurance are either the “all-in” policy, which provides coverage for just about everything within your condo home, including the walls and what lies within, like plumbing, or the “bare-walls” policy which, as the name suggests, covers really just your possessions and perhaps fixtures and maybe appliances in the condo. The type of insurance you choose will often depend on what insurance the HOA may carry and what your budget may allow for your own policy breadth.
The arguably greatest benefit in obtaining good condo insurance is the peace of mind in knowing that your personal belongings and valuables in your unit are financially protected from loss and damage. And there is also the personal liability protection for which you are covered that, should some legal action befall you, could grow in its importance instantaneously.