Owning a condo unit is not the same as owning a single house. You want to make sure your home, belongings, and the people living in the condo are protected.
If you are planning to buy condo insurance, here are some factors to consider:
Basic Types of Coverage
These coverage types typically belong in a master policy.
- Unit, building, and any fixtures
- Your unit and all items inside it aside from your personal belongings.
- Main building and common areas
Determine what is covered in your master policy. Then, include your individual coverage according to the extent of the master policy coverage.
What Is a Master Policy?
In a condominium building, there are common areas. These places are shared by all the owners of the condo. The owner’s association usually purchases insurance coverage, which is the master policy.
This policy refers to the hallways, exterior walls, boiler room, roof, and other common areas. What is included in the coverage and what is not is indicated in the condo association policy.
What Is a Deductible in the Master Policy?
A condo association policy typically has a deductible that is proportionally charged to all owners of the unit in case of a claim. It is important to know your responsibilities, as it could mean a huge financial accountability later on.
Learn About Additional Coverage
When choosing coverage options when you have a condo, it is the same if you own a house. You need to decide if you buying additional coverage is necessary. Some of the options you may consider are:
- Flood insurance
- Personal liability coverage
- Replacement coverage or cash value
You may also consider umbrella coverage, which is a separate personal policy. When your condo liability coverage reaches its limits, the umbrella coverage starts to take effect. It is particularly useful in the event that you face a lawsuit such as slander, libel, or large liability claims.
Cost of Condo Insurance
There is no specific amount for the condo insurance, as this depends on various factors. The homeowner’s association coverage also affects the cost of condo insurance.
Before you buy a condo insurance policy, determine the scope of coverage as well as your deductible. Basically, the policy will depend on the capability of the insurance company to make claim payments.
As soon as you get the key for your new condo, you should know living there includes receiving ample protection. Call your insurance agent about the best condo insurance policy for you. Velox Insurance has its clients as their first priority with affordable rates and clever policies. To learn more about how we can help you please contact our agency at (855) 468-3569 or Click Here to request a free quote.