What is so different about Condo's?
Living in a Condominium Unit or Town House has its benefits, generally you will find the Homeowners Association will take care of many things pertaining to your home...including insurance. Common misconceptions can lead to disaster when that condo owner finds out that the HOA is only covering the buildings structure.
Here are 3 things that really matter when it comes to buying Condo Insurance:
As with being a homeowner in any way, you have an asset, but with that is a big liability that brings levels of protection you will want to consider. Personal Liability on your Condo Policy can come in different levels ranging from $100,000 to $500,000.
Not only does this help you in instances like if your animal was to injure someone, or if somebody got hurt on your property...but being a condo owner you live next to others, and you are liable for damages to any other units.
For example, you have an overflow and the water damages the entire unit below yours, the HOA and other unit own may find you responsible to replace everything.
Wonderful part of an HOA is that they cover damages to most of the exterior units and amenities. Don't forget that this is not free, and your due's and assessments cover these.
Take into consideration if their was a fire at the community pool, and the loss resulted in the HOA paying thousands of dollars. They can now charge a loss assessment that leaves the Condo Owners on the hook for that money.
Most Condo Insurance policies come with a minimum amount of Loss Assessment Protection, but when talking with us we will be able to recommend what the right limits to carry is for you and your particular Condo Association.
When it comes to associations and what they cover, their is a huge misunderstanding and it is common for someone to think they do not need building coverage, also known as Dwelling.
Your Condo Association may cover your structure, but any improvements you have made to it may be at risk. This includes something as small as any features like fans, lights, wood floors, etc.
Also you will want to account for the quality of kitchen you have, as well as your bathrooms. This coverage should not be underestimated, and only you and your agent can determine what is the right amount for you while discussing your Condo Insurance.