Condo Insurance: What is It?
Essentially, this is a homeowner’s policy for someone who is part of a condo association and owns a condominium that is part of a larger community. This insurance covers many things from fire to theft, as well as expenses from liabilities, in the individual condo. This policy can also cover any household improvements that are made by the owner, as well as protecting any additional fixtures in the unit. This policy is bought by the condo owner and is expressly for their use.
How Does It Work?
Like all types of insurance, this insurance requires the payment of monthly or semi-annual payments to the insurance company in exchange for protection against several different kinds of damages that may occur in a condo.
A different aspect of this insurance is that it is also meant to complement your condo association’s insurance policy. Through condo or HOA fees, condo owners pay for insurance that protects all of the common areas on the property, as well as some of the areas in the individual condominiums. Sometimes all fixtures and structures are covered by the association’s policy, meaning the insurance bought for the condo itself would only need to cover personal items. Most policies, however, only cover the structure of the condo building itself.
What is Covered by a Condo Policy?
When you buy this insurance, several things are covered. All of the structures that you own related to the condo, including any garages, sheds, and structures, are covered for damage due to fire, theft, flooding (with some policies), vandalism, or any other damaging events. These policies will also cover expenses that come up when someone is injured on the property, including coverage for their medical or legal expenses in order to protect the policyholder from prosecution.
The Benefits of a Condo Policy
The benefit of a policy for a condo is that it covers what the condo association’s insurance policy does not. Most associations have an obligation to protect the building itself, as well as areas used by all association members. Because it is not affordable for the association to pay for all of the insurance, condo insurance picks up the slack”