Many condo owners who do not invest in condo insurance believe that their master insurance policy covers their property. That is false; a master insurance policy covers the building as a whole, but as for their rented property, they will need condo insurance. If you want safety and protection for your condo against life's unfortunate events, condo insurance is a wise precaution.
Here are some frequently asked questions and answers regarding this type of coverage:
Do I really have to get condo insurance? What does it cover?
Condo insurance is optional, but having it protects you and your condo from the following:
Vandalism Thef Burglar Natural disasters Plumbing problem Fire
Condo insurance will also insure your personal belongings and will save you a substantial amount of money, if you have financial problems to settle.
There are some condo insurance policies that include flood insurance. Many do not. Some offer it as a rider. It is in your best interest to talk to an insurance agent about purchasing additional coverage.
Is more condo insurance really necessary, even if I pay my dues to my condo association's/master policy?
The dues you give to your condo association's master policy cover the exterior of the building and the association's liability. You will need more coverage for your own property that is customized to fit your lifestyle.
If I insure my possessions, how much condo insurance is appropriate?
Replacement coverage should be included in your condo insurance policy. This will reimburse you for any personal property loss during an unfortunate coincidence. However, you have to evaluate how much your possessions cost and how much insurance should cover them, if you were to lose everything. A good tip is to videotape and document appliances, jewelry, furniture and electronics in your home to avoid disputes with the insurance company. Be sure to also communicate with your insurance agent to see if there is anything that cannot be covered in your policy.
As you search for condo insurance, remember that each insurance company provides different coverage and rates. In this case, it is best to shop around to find coverage that fits you. A common mistake is thinking that you should purchase condo insurance for the same amount that you bought your unit for. Remember that only everything inside of your property should be under your condo insurance policy. The rest should be handled by your association.
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