About Condo Insurance
Condominium insurance has some inherent differences from normal homeowners’ insurance, just like the condo units themselves vary from single-family homes. The condo association (or “HOA”) will normally have some insurance that protects its members, however it is important to keep in mind the extent of the HOA coverage when considering the additional protections of good condo insurance. With HOA coverage, protection will often stop at the exterior walls. You are then responsible for the interior walls, fixtures and appliances, cabinetry, and other personal property within. The HOA coverage basically protects the association from liability for accidents or injury but does very little in protecting the individual condo owners.
Who benefits from condo insurance?
Condo insurance is specifically designed to protect the condo owner from possible losses that are not covered under the HOA insurance. Owned property is what is protected with this types of policy. In the case where the homeowner is found liable for any damages, this the kind of policy that provide significant help. For instance, if a fire were to break out in your unit and ends up also damaging your neighbor’s unit, this coverage helps pay for the damages.
How it works:
Condo insurance safeguards the condo owner from losses resulting from such events as wind, fire, theft, water damage and other potential losses, even from vandalism. Should one face a loss, he or she will likely be required to file a claim with both the condo insurance company and the HOA’s insurance provider too, as often damage can occur to both interior and exterior areas. Keep in mind that these policies don’t generally cover damage from flood and earthquakes; separate policies or riders will be necessary for this.
Types of Policies:
There are two different kinds of condominium insurance packages. One of these is meant for people who own a condominium, while the other is designed for those who are renting out their condominium. There are also different packages for those who desire protection for certain items inside of their dwelling, like expensive art or other valuable items.
It’s not hard to see how important the benefits of condo insurance can be. You enjoy protection if you sustain damage or experience theft of any personally owned property. You will also have certain other protections from loss or liability should you be away from your condo residence.