If you have recently made arrangements to purchase a condo, you will need to think about condo insurance. This is not only to protect your own investment, but to help meet your responsibilities as a unit holder within the condo corporation.
A condo complex will usually have insurance through the condominium corporation and you may think that you are covered by that. This is definitely not the case. The insurance held by the corporation will not cover the contents of your condo. Only the items which are owned by the condo corporation are covered by the condo corporation policy.
Another thing to ask is what your condominium insurance covers. You need to know that upgrades to your unit, such as improved flooring, are not normally covered by the corporation policy. Like a homeowners policy, you may also need to make special arrangements to include luxury vehicles or items stored off the premises.
Because you have responsibilities to the condominium complex, you will need to make sure that you are able to meet those requirements through your insurance policy. Specific condo insurance policies reflect that in their wording, but you should make sure that the insurance policy you choose will mesh well with your unit holder responsibilities.
One aspect to condo insurance that differs from homeowners insurance is the distance from the residence that injury claims are covered. In homes, this should include the property, but in condo insurance this is often a much shorter distance. Condo insurance will cover personal injury that occurs within one hundred and fifty feet of the door. As you can see, this is one area where there is a significant difference between condo insurance and homeowners insurance.
Many insurance companies will drop their rates if you are also insuring a vehicle or other items from them. A bundled rate can be good, but don’t worry if you are not insuring anything else. You may still be able to get a deal if you go to the company which is also insuring the condo corporation. They may be able to give you a better group rate than a stand-alone policy through another company.
There are so many differences between condo insurance and homeowners insurance that most important questions should be to your insurance company or agent. How much experience has their insurance company had covering condos? Are they simply giving you a modified homeowner’s policy, or are you getting one specifically designed to cover the unique living situation of a condo? The answer may tell you you need to look elsewhere for coverage.
By asking the right questions in the right areas, you can make sure that you are getting the best condo insurance policy to cover you and your items. With luck, you will never need it. But in the event that you do, the last thing you want is to discover that there are problems or gaps that leave you out in the co
Author: Ken Henry can help you find the solutions to your insurance questions. Get homeowners insurance rates from the best companies, plus save big money on auto and homeowners insurance
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