Condo insurance allows you to protect all of the things that are most important, from your condo and personal belongings to your income and assets. A lot can go wrong to threaten your livelihood. With the right condo insurance, you can trust that you are covered in a wide range of scenarios, such as when:
- Someone threatens to sue you for damages or injuries you cause them
- A thief burglarizes your condo, and you need to replace thousands of dollars in lost belongings
- Fire destroys your condo, leaving you with no home and no belongings
The Role of Your Condo Association
Condo living has its perks. Typically, your condo association dues will cover the upkeep of the building you are in, as well as a master insurance policy that covers the structure of your unit and any liabilities against the association members. However, the master insurance policy does not cover everything. You are still responsible for procuring coverage for yourself, the inside of your unit, and everything you own.
For example, the master insurance policy may cover the rebuilding of your unit, but only according to the specifications set forth in the policy. Some may take care of the cabinetry, flooring, and fixtures, whereas others may cover none of the interior at all. It is important to find out exactly what is covered by your condo association’s coverage so your personal policy can pick up where the master policy leaves off.
Types of Condo Insurance Coverage
Once you understand the details of your master policy, you can begin working with your agent to craft a personal condo insurance policy that minimizes your risk exposure and covers everything you have, wall to wall. Some of the most common condo insurance coverage types include:
Building Property Coverage
This is coverage for the portion of your interior that is not covered by the master policy of your condo association. This coverage could pay to replace your granite countertops, baseboards, crown molding, and more to your condo’s like-new condition.
Personal Property Insurance
Take a home inventory to find out how much it would cost you to replace your family’s wardrobe, textiles, furnishings, décor, jewelry, kitchenware, sporting goods, toys, electronics, and more. Your condo insurance can help replace these items if they are stolen, damaged, or lost due to a covered event.
Liability and Guest Medical Insurance
If someone is injured in the common areas of your building, the master policy’s liability insurance should take care of the bill. If a guest is injured inside your condo, however, you are responsible for covering the cost. Condo liability insurance can include coverage for guest medical payments, as well as damages or injuries you or a member of your family causes in a non-collision event.
Temporary Living Expenses
You own your condo, but you cannot stay in an uninhabitable space while it is being repaired or rebuilt. Temporary living expense coverage handles your lodging, food, and other expenses while you wait to move back into your home.
Loss assessments are divided among all condo owners in a building when a claim exceeds the limits on the master association policy. If you have loss assessment coverage, you will be covered for your responsibility in the repairs or liability up to the limits of your own policy.