What You Need to Know before Getting Condo Insurance
Your own insurance policy.
This provides coverage for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft or other disaster listed in your policy. You also get liability protection.
A condominium insurance provided by the condo/co-op board.
This coverage covers the common condo areas you share with others in your building like the roof, basement, elevator, boiler and walkways for both liability and physical damage.
To adequately insure your apartment, it is important to know which structural parts of your home are covered by the condo/co-op association and which are not. You can do this by reading your association’s bylaws and/or proprietary lease. If you have questions, talk to your condo association, insurance professional or family attorney. Sometimes the association is responsible for insuring the individual condo or co-op units, as they were originally built, including standard fixtures.
The individual owner, in this case, is only responsible for alterations to the original structure of the apartment, like remodeling the kitchen or bathtub. Sometimes this includes not only improvements you make but those made by previous owners. In other situations, the condo/co-op association is responsible only for insuring the bare walls, floor, and ceiling. The owner must insure kitchen cabinets, built-in appliances, plumbing, wiring, bathroom fixtures etc.
Condo owners are encouraged to apply for their own insurance policy. It is to give them peace of mind financially in case bad things happen.
Key Difference between Master Insurance Policy and Condo Insurance Policy
If you will compare homeowners, the condo owners do not have legal rights in the building where they live nor the structure because they do not own it. It is important to note that your master insurance policy protects the common areas of the condo building and its exterior, but it does not cover your unit, that is why condominium insurance is a must if you want to make sure that you will get the protection that you need for your condo unit.
The master policy has three kinds of insurance policies. It is the all in and all-inclusive master policy, the bare walls in and the wall studs in, and the special entity. Your all in and the all-inclusive policy covers the interior up to the exterior part of your unit. It means it covers your fixtures together with the necessary installation and additional coverage cost. On the other hand, the special entity coverage policy ensures your entire condo unit, but it does not include the unit additions and the structural improvements. Lastly, the bare wall and wall studs policy covers the basic structure of your unit.
Notice that all the policies available do not cover your personal belongings. You are held responsible for the repair or replace personal property. This is when the condominium insurance comes in. Once you know the coverage of the master policy, planning for your condo policy will not be that stressful. The first step that you must do is to look for an insurance company that can provide insurance coverage that suits your needs. You need to insure your personal property, and with your condo policy coverage, you have nothing to worry about.
Condo Insurance Coverage
Your condo insurance will typically cover the damages that occur in your unit. It particularly covers your personal property, the interior walls, and even the floors; it also covers your valuable belongings like furniture and appliances.
You can also get protection in times of incidents like explosion damage, fire and smoke damage, lightning damage, wind and hail damage, theft, vandalism, and even burst pipes. However, the insurance company does not cover any natural occurring disasters like earthquakes and flood damage. You will also hold the responsibility if ever the damage is intentional and undergo the process of wear in tear.
Your condo insurance has two forms of coverage the replacement cost, and the cash value. The replacement cost coverage works in knowing how much will it cost you to replace the insured items. For example, your appliance has been stolen to compensate for the loss your insurance company will check the replacement cost of the item. The cash value coverage on the other hand helps you recover the value of your item, and deducting the depreciation. For example, belongings like furniture and clothing were stolen; your insurance company will write a check with the amount and date it was stolen. Your policy provides protection and assurance to cover your personal property.
What to Prepare for Condo insurance
If you are planning to buy condo insurance, there are certain preparations that you need to make to make sure that your personal property and belongings are properly covered. This will help you to save money and avoid overpaying your policies.
The first thing you need to do as a unit owner is to make an inventory of all your personal property inside your condominium unit. With this, you will easily determine the cost of your condo insurance as well as how much coverage you will need. Moreover, you will easily know the items that are lost and file a claim easily. You will also know the belongings that need protection and coverage.
Second, it would be best if you check and know the master policy coverage of the building. Once you understand the policy coverage of homeowners association insurance, you can easily identify the risks that you have. It can be underinsured, leaving, and not knowing the damages, which are included in the insurance. Or maybe, overinsured by spending or paying more than your policy coverage.
How to buy Condo Insurance
There are a variety of ways of purchasing condo insurance, but the best of it is working with an independent insurance agent. You can also shop for coverages for your condo insurance coverage.
Working with an independent insurance agent will show you the comparison charts of different insurance companies as well as their rates. In this manner, you can understand the policy that they are offering and the condo insurance policy that is available. You will also know the coverage you need and the common areas that you are at risk. Your insurance agent will also provide an unbiased consultation about the policies that you will take, as well as the discounts applicable to you.
What to do Next after buying condo insurance
The main goal of your condo insurance is to ensure that you are protected financially. So in order to ensure that you are protected, it would be best if you regularly update our insurance policy in the care you are having an expensive purchase.
You are also required to maintain your condo unit properly because the insurance company can decline your liability coverage if your personal belongings are always in mold and disrepair. At all times you should practice and keep the structural identity of your unit, failing to do so will result to increase of premium coverage and of course, additional living expenses.
How to get Condo Insurance Claims
If you encounter an accident, filling claims in your insurance company, or the condo association is a must. Well, it all depends on your situation.
Here is an example, if your condo unit suffers from a burglar, filing a claim in your insurance company is the right thing to do. And the condo association does not have the liability for that. However, if you suffer from a burglar and it involves a low-quality security system like a nonfunctional security system and external doorways; filing a claim in the condo association insurance company is the right thing to do.
Once you already secure the condo unit that you dearly love, taking measures to protect and save it is the best thing that you can do. And you can start by getting condo insurance coverage. And before anything else, research what you need to know about condo insurance as well as personal property coverage, loss assessment coverage, and liability insurance. This policy may help you with your insurance policies and the replacement cost that you need. Remember that knowledge can help you save money as well as being wise in your coverage limits.
Why Condo Insurance Important
The condo association will only cover the outside or the exterior of your condo. But having condo insurance will help protect the interior and your personal belongings. You can have liability coverage that can cover the damages in your property and casualty in case of fire or accident. You can also be benefited from the loss assessment coverage by getting the actual cash value of the furniture, clothing that has been stolen. Your insurance company will also cover your medical expenses in case you suffer physically and mentally during the disaster. Moreover, the personal property coverage also compensates you with the actual cash value of your items. You can also get the replacement cost for the damage to your property.
Bear in mind that you need to protect yourself from lawsuits and liability claims in case there is an accident. You can use your liability coverage to help protect yourself in case you are liable for the property and casualty. It can also help you cover the suits like slander, liber, and bodily injury claims. You are covered financially, but it would be best if you can evaluate your coverage in case you need to purchase additional protection.
Your condo unit is one of the precious valuable that you can have as an investment. It is your home, and no value can replace it. To help and protect yourself from unprecedented events, a condo insurance policy may help. You are entirely covered and safe financially in your home. In case of an accident, you do not need to worry about the cost of the damages in property and casualty. Work with an agent today, and have the blast of the benefits and security with condo insurance.
Also, ask your insurance professional about the following additional condo coverages:
Let the Commercial Property Insurance Agency, help you understand and protect all of the risks you run and all of the perils your business faces. We will do this with a well thought out and executed business insurance policy designed just for our Condo Insurance policyholders.
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