Condo insurance provides financial support for when disaster strikes a condo. It is similar to traditional homeowners insurance, except it is for people who call a condo home.
Some people who live in a condominium believe that their condo association’s policy covers everything. It’s true that some things are covered by the condo association’s insurance policy. However, that coverage may or may not include personal space. If personal space is not covered, then a person who lives in a condo is financially responsible for their own living space.
A condo association usually has one of three policies:
1. Corporate Policy – This policy insures the common areas and the main building.
2. Entire Building Coverage – This policy insures the entire building as well as individual units. This policy also covers fixtures or physical improvements a tenant makes to their space.
3. Building and Permanent Items – This policy insures the building, and permanent items in a unit, but excludes personal belongings.
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 inventory so if items are stolen or destroyed, you can get a replacement quote. 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. Taking an accurate inventory is important, and helps you get the right amount of condo insurance.
Condo Insurance and Discounts
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 reduce premiums, and make you sleep better at night.