All you need to know about condo insurance
A condominium is a separately owned living unit within a larger building or development. If you live in a condo unit that you own, you need to have condo insurance.
What is it?
Condominium insurance is a type of property and casualty insurance that covers your belongings and in some cases part of the structure of the condo from damage or loss by many named perils, including fire, wind and rain.
Who is it for?
Condominium insurance is for anyone who owns a condo. If you live in your owned condo, you need to have insurance to protect your belongings and, in some cases, appliances and other fixtures. If you own the condo but rent it out, you may need both a condominium insurance policy and a landlord policy.
How does it work?
Insurance for your condo works much like any other type of property/casualty insurance. If you sustain damage from what you believe is a covered event, you will have to notify your insurance company, which will send out an adjusted to evaluate the damage. Once the claim has been certified, you likely will be sent a check to cover your loss. If your unit is uninhabitable and you have loss of use coverage as part of your policy, your insurer will pay for you to live somewhere else.
Types of coverage
The type of condo coverage you need largely depends on what type of condo master policy the building owner or homeowners association carries. If it is an all-in policy, it will cover everything that goes with the unit, including wiring, plumbing and appliances. In that case, your condo policy would only need to cover your personal belongings. If the master policy is a bare-walls policy, however, then your condo policy has to cover everything on the interior of the condo, including plumbing, wiring, carpet and appliances.
The major benefit of carrying condo insurance is that you are covered against loss in the event of a disaster. Another benefit is personal liability coverage to help cover you if someone is injured in your unit.
Condo Insurance for Condo Owners
A condo is the same as a condominium. So when you hear the word “condo,” understand that the person is talking about a condominium. A condo is a large building in which tenants buy living space. The tenants own their space, unlike an apartment which is usually owned by a landlord. Since tenants own their own living area, it is wise to have condo insurance.
Condo insurance is property and casualty insurance. It covers belongings in a condo and the space from damage or loss by perils, including fire, wind and rain.
Condo insurance is for people who own a condo. If you live in a condo, then you need insurance to protect your belongings. You also need liability protection, just in case someone is hurt in your space and decides to sue. If you rent your condo to a tenant, then you may still need a condominium insurance policy.
Condo insurance works like typical property/casualty insurance. When your condo sustains damage from a covered event, you file a claim with the insurance company. If the claim is valid, then you will receive payment from the insurance company.
The coverage you need depends on the condo master policy the building owner or homeowners association has. If the building owner or association has an all-in policy, then it will cover everything that goes with the unit. In that case, your personal policy needs to cover your personal belongings. On the other hand, if the master policy is a bare-walls policy, then your policy should cover everything inside your condo, including the wiring and pipes.
If you own a condo, then it’s in your best interest to have insurance coverage. Accidents can happen at any time, especially when you live in close proximity to other people.