Introduction to Condo Insurance
Good condominium insurance is markedly different from standard homeowners’ insurance in the same way that a condo unit is different from a single-family home. One’s condo association (or HOA) is likely carrying some insurance coverage that protects its members as a whole. Importantly, the level of protection you have on an HOA policy should be kept at the forefront when seeking the additional coverage of condo insurance. With HOA policies, protection usually ends at the exterior walls. You are then obliged to deal with anything on and within the interior walls, including such things as fixtures and appliances, any cabinets and, of course, your personal belongings. The HOA basically protects the association from any liability that arises from an accident or an injury but does little or nothing in the protection of individual condo owners.
What is it?
Condominium owner insurance was designed to protect the condo owner from the innumerable possible losses and perils that are not covered under the HOA’s policy. Owned property is what is predominately covered in this type of policy. Should a condo homeowner (but not the members of the HOA) be found liable for any damages, this is the policy can protect the condo dweller. For instance, if a fire breaks out in a condo and also damages a neighboring unit, this policy will help.
How it Works
Condo insurance safeguards the condo owner from financial losses that are a result of the wind, fire, theft, vandalism, and water damage from, say, a leaky pipe and other potential losses. Should you be faced with some kind of covered loss, you will normally be required to file a claim with both your condo insurance company and the HOA’s company too since some claims will include damage to both interior and exterior parts of the condo. Know that these policies will not generally cover flood and earthquake damages.
Types of Policies
Normally it is broken down into two classifications. First is the “all-in” policy for individual condos owners that will safeguard just about everything inside the unit, including personal items. It also protects the policyholder from liability claims for injuries or accidents that might occur inside the unit. On the other hand, a “bare walls” policy covers most everything that is outside of the unit, including the exterior walls, but nothing within the condo walls. This is generally what your HOA will have and, therefore, would not apply to the condo dweller specifically.
It’s easy to see the importance of the benefits of good condominium insurance. You get protection if you sustain damage or theft of any personally owned property. You will also have certain other protections from various kinds of loss or liability should you be away from your condo home.