Condo insurance is a specific form of insurance aimed at safeguarding the living space by covering its structure and items stored inside it from the indicated perils like theft and damages caused by acts of vandalism or fire.
Condo insurance provides financial support when a disaster strikes a condo. It is similar to traditional homeowners insurance, except for people who call a condo home. Some people living in a condominium believe their condo association policy covers everything, and the condo association’s insurance policy indeed covers some things.
However, that coverage may or may not include personal space. If a private area is not covered, a person living in a condo is financially responsible for their living space. A condo association usually has one of three policies:
A standard condominium insurance policy covers the following categories:
This insurance type does not cover damage resulting from earthquakes, storm surges, or floods. Such risks are frequently excluded from condo policies, and if you live in a high-risk area, you will have to acquire a separate coverage.
You can determine the coverage you need when you know the value of your belongings. Take an inventory of everything in the unit, including computers, televisions, electronics, furniture, and clothes. Take photos during the inventory listing to get a replacement quote if items are stolen or destroyed.
You should store the inventory list and pictures away from the condo. Talk to an insurance agent, and they will help you evaluate the cost of your items. Accurate inventory listing is essential and enables you to get the right amount of condo insurance.
In some cases, it is possible to reduce monthly premiums. If the location is made safer, then premiums usually decrease. A security system in the unit will lower premiums and make you sleep better at night.
Victoria is a Content Writer at American REIA, covering the latest industry news and various insurance topics, including auto, home, health, and life insurance.
Date added: February 8, 2023