Condo Insurance Coverage
Enjoying the condo life means fewer homeowner responsibilities and more care-free living. There will be no lawn to cut or exterior fixes to make. If you live in the northern climes, you need not stress about shoveling snow either. One can still experience major problems if one does not maintain a good condominium insurance policy for the interior of your dwelling, any owned furniture, wardrobe, valued personal belongings and appliances.
First thing to do is to investigate your HOA’s master policy to be sure that all exterior aspects of the building are covered as well as the common areas shared by the owners. In general, there will never be a master policy that covers anything within the walls of your condo unit.
Another thing to keep in mind is liability. If, for example, you have a guest and he or she falls on your foyer floor and gets hurt, it will be you and not the HOA that will be hit with the lawsuit. In this case you will have wished you bought liability coverage.
It will likely be a financial life-saver if you are properly insured and, for example, the inside of your unit is damaged from an event such as fire or a severe storm. Even a grease fire in your kitchen can result in substantial damage. Keep in mind that the HOA’s insurer will not pay for repairs to anything within the walls of your unit and your damaged or destroyed personal property will also not be covered.
Another great benefit of this coverage is the protection you receive for any burglary of your personal property, yet another risk the HOA policy will not cover.
If you purchase good condo insurance, you’ll also want to conduct an inventory of all your personal property in your unit that you’d like to cover. Then you will need to determine how much it might cost to replace all of it. After this, you then will need to talk with your agent regarding how much insurance to purchase in order to be fully protected. Should there be some valuable belongings in your dwelling, be sure to inform your agent as there might be some special endorsements necessary.
Remember, the HOA policy only covers the outside so don’t ignore what’s on the inside of your condo. In the event of some event, you will likely regret not having appropriate coverage for the myriad of belongings inside your unit.