Condominium insurance is has some notable differences from normal homeowners’ insurance, just like the condo units themselves are quite distinguished from single-family homes. The condo association (or “HOA”) will likely have some level of insurance that protects its members, but it is vital to know the extent of coverage you have on the HOA policy when shopping for the added and often very important protections offered by good condo insurance. With HOA coverage, protection will usually end beyond the exterior walls. You are responsible for any interior walls, fixtures and appliances, cabinets, and all your personal belongings. HOA coverage normally only protects the association from liability for accidents or injury and does really very little to protect the individual dwelling owners.
What is it?
Condo owner insurance is designed to protect you, the condo owner, from a myriad of possible losses not covered by the HOA insurance. Owned property is what is covered in this case and, in situations in which the homeowner is found liable for any damages, this policy provides the help needed. For instance, if there is a fire in your unit that also damages your neighboring units, this insurance steps in to compensate and protect you.
How it works
Condo insurance financially protects the condo owner from losses resulting from storms, fire, theft, water damage and other perils. This even includes acts of vandalism and also often covers smoke damage and water destruction derived from broken plumbing. Should you face a loss, you then should file a claim with both your condo insurance company and the HOA’s company too. This is due to the fact that many claims will likely include damage to both interior and exterior parts of the condo. Remember that these policies don’t generally cover floods and earthquakes and you would need to buy separate policy coverage as needed.
The types of protections and benefits
With condominium insurance you are protected from damage or theft of any of your personal property. You will also enjoy the peace of mind in knowing that you have a myriad of certain other protections from loss or liability should you be at home or off visiting and not in your condo. This is liability coverage, which covers all situations in which you as the unit owner could be held, as the name suggests, liable. It handles the medical expenses of the injured person, along with other costs like lost work wages for the one suing. Usually condominium insurance liability will have up to $500,000 in coverage protection. As a condo dweller you owe it to yourself to find out more today.