How Condo Insurance Works
People who own a condo purchase condo insurance to protect their property. This type of policy covers their condo and their contents. The policy includes liability coverage, should someone get hurt in their unit. Here are the things you should know about these policies.
When you own a condo, the condo association has an insurance policy that covers the structure itself. The individual owners often need to buy coverage for their unit for “The paint in.” A condo insurance policy has coverage for building property. It covers permanent features such as cabinets, water heaters and fixtures.
Condo insurance policies also have personal property coverage. This covers your belongings such as furniture, electronics, appliances and clothing. If any of these items are stolen or damaged in a covered claim, this coverage will help the policyholder repair or replace them.
Personal property can be covered under actual cash value or replacement cost. Actual cash value covers the depreciated value of the belonging. A policy with replacement cost doesn’t take depreciation into account and instead covers what it costs to replace the belonging.
There are limits on certain types of belongings. This includes jewelry, antiques and artwork. You can pay for riders to cover these types of items for what they are appraised at.
Condo insurance policies have a deductible on building property and personal property. This is the amount you pay before the policy starts providing coverage. Condo owners can choose a higher deductible if they want to pay less for their policy, or have a lower deductible so they have better protection.
These insurance policies have liability coverage, sometimes called guest medical coverage. If a guest is injured in your unit, the policy will cover their medical expenses. There is coverage even if you’re not at fault for their injury.
A condo is a big investment and so it is important to have a condo insurance policy. The policy will financially protect you should something unforeseen occur, such as a fire or a guest slipping and falling.