Condo association insurance
is a “must have” for condo owners, but just as there are differences in
ownership of a condo, a town home and a single-family home, there are
different insurance needs. The following can serve as a general buying
guide for condo association insurance.
When you own a condo, you own one
unit in a complex. Your condo association fees pay for, among other things, a
master insurance policy that covers the grounds, the building
exteriors, liability for the common areas and more. But each master
policy will differ with each complex and can affect your condo
insurance policy needs.
- What is
covered? Some master policies cover to the walls of your unit but you
are responsible for fixtures and additions. Some cover the fixtures and
additions.
- What is the deductible?
The deductible is the amount you might be assessed to pay if your condo
association files a claim on the master policy.
Once you know what you might be
liable to replace in the case of fire, hurricane or other destructive
event and you know the deductible you might be liable for, you need to
calculate what it would cost you to rebuild uncovered items. Again,
depending on your master policy, this could include cabinetry and
flooring. But in addition to these, you need to
have coverage to replace your personal possessions such as clothes,
electronics, and decorative items. This can run into tens of thousands
of dollars. Be sure to have a good inventory of your personal
possessions so that the claims process is made easier.
The master policy should have
coverage for flood and wind damage. But is it enough if there is damage
to your unit and are you certain it is there? Flood insurance is
available through the government. Also, be aware that flood damage is
different from water-backup damage. Make sure your condo insurance
policy covers you for the right cause of damage. Personal liability coverage is also a
must and must be gauged to the liability coverage on the master policy.
In most cases, you are responsible for accidents in your unit.
All major property and casualty
insurers offer condo association insurance. Most have an online presence where you
can get a quote and compare rates. Put the Internet to work for you buy
comparing many firms in the marketplace and let competition do its
work. If you are choosing among sound companies, find the best deal.
But make absolutely certain that the coverage you are getting meets the
needs of your personal circumstances.
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