Condo Insurance
Are you planning to buy, or have you already purchased, a condominium? Condos are some of the hottest dwellings — especially for first-time homebuyers and those who want a maintenance-free home exterior lifestyle.
Although condos don’t tend to appreciate, well-loved ones do seem to retain their worth, making them good investment vehicles. However, it’s important to understand that even if you rent a condo rather than buying it, you’ll need insurance specific to condos rather than to general renters.
The Difference Between Renters Insurance and Condo Insurance
To tenants, a rented property may seem the same wherever you go, but that isn’t the way insurance carriers look at condos. Condos are unique types of residences because of a few factors:
- They are part of a community that is governed by some sort of association. This association usually takes care of all the outdoor needs of the community but doesn’t take care of the interior expectations.
- They can be all types of architectural setups, from apartments to townhouses. There is no one type of condo.
- They may have common areas as well as private areas mixed throughout the community, meaning insurance policies should govern each appropriately.
Given these differences, condo owner insurance has a few specific necessities:
- It must protect the interior walls of the condo.
- It should provide protection for personal property in the condo in the event of any type of damage.
- It should cover personal liability should someone get hurt while inside the condo.
Although these necessities may be shared in some ways with renters’ insurance policies, they contain specific language concerning condos.
Additional Riders for Condo Owner Policies
In addition to the basic coverage offered through condo insurance, some condo owners and renters opt to include additional riders governing:
- Flooding. Not all condos are above the floodplain. For instance, a condo owner with a basement condo may feel better protected with flood insurance.
- Personal Belongings. If you have expensive personal belongings, you may want to include a rider to your condo insurance policy in case these belongings are lost, stolen or damaged.
- Earthquakes. Depending on where you live in the country, you may want to consider adding earthquake coverage to your condo insurance.
Costs Associated With Condo Insurance
Because there isn’t one kind of condo insurance, your premiums will vary depending on your needs. Shop around with different carriers and see which gives you the coverage you want at a rate you can afford.
What to Do Before Visiting Your Local Independent Insurance Agent
Every condo association should give owners a copy of the complex’s insurance policy. Be sure to bring it along with you when you sit down with your local insurance agent. That way, he or she can help you understand how you can best protect yourself.
Don’t assume something is going to be covered — that can get you into trouble if you have to make a claim. Understand the full scope of coverage and who is liable for what. That way, you can sleep well at night and feel that your interests are always protected.
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