Understanding Condo Insurance
Good Condo insurance has some important differences from normal homeowners’ insurance, just like the condo units themselves are different from a typical single-family home. The condo association (or HOA) will usually have some insurance coverage to protect all its members. It is important to know the level of coverage on the HOA policy when one is looking to purchase the additional protection of condo insurance.HOA coverage will usually stop beyond the unit’s exterior walls. The condo homeowner is then responsible for any interior walls, fixtures, appliances, cabinetry, personal belongings and so on. The HOA basically protects the association from the financial repercussions of liability for accident or injury but does little in protecting individual owners.
Condo Insurance Details
Condominium owner insurance is designed to specifically protect the condo owner from the myriad possible losses that are not covered by usual HOA insurance. Owned property is what is protected in this kind of policy. If the condo homeowner were to be found liable for any damages, this is the policy will help. For example, if a fire starts in your unit’s kitchen and spreads to your neighbor’s unit, this insurance can pay for damages.
How Condo Owner Insurance Functions
Condo insurance protects the condo dweller from losses due to wind, fire, theft, and certain water damage and other potential losses. Should one face a loss, then he or she would then likely need to file a claim with both the condo insurance company and the HOA’s provider as well, as some claims will likely include damage to both interior and exterior parts of the structure. Keep in mind that additional policies would normally be needed to cover floods and earthquakes.
Types of Policies
There is the “all-in” policy for individual condo owners that covers mostly everything inside the unit, including personal items and any liability for injury or accident that might happen within the dwelling. A “bare walls” policy covers the outside of the unit, including the exterior walls, but nothing that is within the condo walls. (This is generally what the HOA carries so would not apply to an individual owner.)
The benefits of condo insurance are great. With it you can obtain protection if you have damage or theft of any personally owned property. You will also have certain other protections from loss or liability should you be away from your condo home.