CONDO Insurance – Customer-friendly
Condo insurance is a special type of property insurance that is designed specifically for condominium owners. With a condominium, the owner owns the inside of the dwelling, and the owners’ association maintains the exterior of the building as well as other fixtures on the property. Therefore, if the owner’s unit is damaged in some way, his or her losses would only equate to the damage on the interior of the unit. The condo insurance policy is written in such a way that only the property actually owned by the condo unit owner is covered.
Most condo lenders will require the owners to purchase a minimum amount of coverage, and this coverage may include a liability and a repair or replacement component. The unit owner may be held liable if someone is injured inside the condo, and liability insurance will pay for those expenses on behalf of the owner after the deductible has been paid and up to the limits set forth in the policy. A repair or replacement policy may work in the same way. The owner will pay the deductible, and the policy will pay the remaining expenses for covered losses. This may include losses related to a flood, a fire, a natural weather event, theft and more. Some policies also include a personal property component. This will replace the property that is lost inside the home, such as if the television and entertainment system was stolen in a theft.
When you are purchasing a new condominium unit insurance policy, take time to learn more about the lender’s insurance requirements as a first step. Then, speak with your insurance agent about optional coverage, such as personal property coverage, that you can add to your policy for additional benefit. If you want to lower your premium, you can consider increasing your deductible. The deductible needs to be paid with each claim that you file, so it should always be affordable for your budget and and the funds should be available to pay at a moment’s notice.