Being a new owner of a condo unit, you may feel very proud of your new home. You may even feel giddy to start condo living. But before anything else, you should have yourself protected with condo insurance.
Although you may think that it?s similar to home insurance, it?s actually very different. And with that, you may find it confusing to understand. To help you understand it better, we?ll answer three frequently asked questions.
How is condo insurance different from homeowners insurance?
The ownership of a condo unit is different from owning a house in a village. That?s because you have both and joint ownership of a building. That means you own the structure of the condominium building with other condo unit owner while you own your unit. Homeowners don?t have this situation.
Because it has a different kind of home ownership, special coverage is needed. This coverage includes financial protection for the personal property and structures of the unit. It also covers common elements in a condominium association, such as external structure and common areas.
What should you know about condo insurance?
A condominium association is comprised of unit owners who share ownership of building?s external structure. As a condo unit owner, you bought a space inside that building. The unit itself needs to be individually insured in a condo policy.
The external structure and common areas of the condo building is defined by the bylaws of the condo association. These bylaws state the insurable interests of the association and the owner.
Condo owners face loss assessment. Loss assessment happens when the external structure of the building is damaged. For example, when wind damage occurs (costing $30,000) and the association policy deductible is $10,000, each unit owner will be assessed for their share of the deductible that isn?t covered by the policy. This is where additional loss assessment coverage comes in handy.
Is it vital to understand the bylaws of the condo association?
Bylaws vary from one condominium association to another. Also, some states have their own Condominium Acts which can override the bylaws. Thus, understanding them is critical, so you will know how much you need to insure.
Living in a condo unit is enjoyable as there are many amenities that a regular home cannot offer. And while that?s the case, financial protection is vital. Have your condo unit insured with reliable condo insurance. Here at Velox Insurance, we offer condo insurance coverage that will help protect your finances. Get a quote from us now and talk to one of our agents! Call us at 1-855-468-3569 or visit us at our office today.