Condo Insurance 101
Condominiums are popular modes of housing today. That?s often because people want to live within (or at least near) the city. Other than that, they offer a lot of amenities that a single family house cannot. And because of that, ownership of a condo is a lot different than owning the regular house.
Condos are also very expensive investments. That is why you need to protect it with the right insurance coverage for your needs. To guide you, here are the things you should know about.
The Master Policy
Condo insurance is a lot different from home insurance. One of those differences is the ?master policy.? A condo has common areas that are shared among condo owners that are typically covered by a master policy. This association?s policy will determine what?s covered and what?s not.
Types of Coverage
A master policy has three basic types of coverage:
- Building, unit, and fixtures
- Primary buildings and common areas
- Insurance for your unit and the items inside it other than personal belongings
Thus, your individual coverage for your unit should depend on the master policy. Ask the association about the extent of the coverage so you?ll have an idea about the type of coverage you should get.
Master Policy Deductible
A master policy also has a deductible that is usually charged pro-rata in case of claims. Ask about the deductibles because it can become a financial burden when there are claims. Master policies often have very high deductibles because the losses are spread out to all the condo owners.
Just like other homeowners, you need to make decisions about getting extra coverage. Assess your situation whether you need a cash value or replacement coverage for your belongings, or personal liability coverage.
It is important to note that the rates for condo insurance typically depend on the coverage you get. Thus, you may not have the same rates as the other residents in your building. Bear in mind that there are several factors affecting the cost of condo insurance. That includes the insurance coverage purchased by the condo association.
So if you?re planning to get condo insurance for your unit, you should consider the amount of coverage and deductible of the master policy. Here at Velox Insurance, we give you access to a reliable coverage at a reasonable price. We offer lots of discounts to help you save money on premiums. Talk to one of our agents now, call us at 1-855-468-3569 or visit us at our office near you and get a free quote from us.