In the United States, 73.9 million people live in HOAs, condominium communities, or a cooperative. Because living in a condo is becoming an increasingly popular option for many homeowners, it is important that people learn how to properly protect their real estate investments.
One way to protect your valuables and to protect your condo is with condo insurance.
If you own a condo, or are thinking about buying one, it is important that you understand the reasons you need condo homeowners insurance. In this article, we explain the top reasons you should invest in insurance coverage for your condominium.
Offers Additional Protection
One of the main benefits of getting condominium insurance is that it offers you additional protection. Often, condominiums have master policies that cover common areas and the exterior structure of your condo. It’s important to note that these master policies do not extend to your particular interior unit.
The owner(s) of the building may also have a Homeowners Association (HOA) or Condominium Association (COA) policy limit but it’s important to remember who is responsible for funding these associations. Spoiler Alert: The owners! If there is a catastrophic claim and the limit has been reached, the owners of the individual units would have to contribute money to pay for the rest of the claims. This is usually done through special assessments.
It’s important to note that condo insurance policies can also include coverage for these special assessments that would assist the owner in what they have to pay out of pocket.
It Provides Personal Liability Protection
Another major benefit of condo owners insurance is that it provides you with liability coverage. While your condo master policy will cover accidents that happen in common areas, you need a condo insurance policy to protect yourself legally if something happens on your personal property.
For example, if you had a guest at your house who slips and falls, there is a chance that they could sue you for the damages. Condominium insurance protects you from these types of claims for injuries, property damage, and more.
Liability insurance is necessary for all homeowners insurance policies and will protect you from expensive and time-consuming legal action. This can include paying the medical bills for the people who were injured, as well as paying for the legal fees and court fees.
Most Mortgage Lenders Require It
Another reason you may need to get condominium insurance is that some mortgage lenders require it. If you buy your condo outright, this won’t necessarily be the case, but insuring your investment is always recommended. However, when a lender has money on the line, they insist that you protect your property from disasters or accidents.
If your mortgage lender requires a condo insurance policy, they will likely help you find the exact type of policy that they require.
Covers Personal Possessions
Next, condo insurance protects your personal possessions and anything within the interior of your condo. As was mentioned before, the master policy that your condo association has will only cover the structure of your condo.
If you want to protect anything inside your condo, it is up to you to get an additional policy. With another policy, you will have your personal possessions, furniture, appliances, and more covered. A lot of times, realtors, insurance Agents, and lenders like to refer to condo insurance policies as “walls-in” policies because they are designed to cover your unit from the walls-in.
Protects the Interior of Your Condo
Something else that is a benefit of getting condo insurance or homeowners insurance is that it protects the interior of your condo. As a homeowner, it is your responsibility to protect everything inside your condo, including your drywall, fixtures, carpets, and more.
Each of these can be covered by your condo insurance policy.
Even if you are not worried about damaging the interior of your condo yourself, there are many external circumstances that can damage your condo. For example, natural disasters and other weather like wind-driven rain can cause problems from flooding as well as bursting pipes and more!
You also could be responsible for damage to your condo, even if it originated in another unit. For example, if your neighbor’s condo unit floods and it seeps into your condo, you will have to pay for the damages. With condo insurance, you do not have to worry about things that are out of your control.
Covers Loss of Use Expenses
Condo owners insurance can also cover expenses for loss of use. If there was a catastrophic event, like a hurricane, there is a chance that you will not be able to access or use your condominium.
If this happens, it may take months to get your condo repaired or rebuilt. In these cases, your condo insurance would help you afford the expenses to stay somewhere else, like a hotel, until you are able to return to your condo.
This type of coverage is especially important when you rent your unit to others. If you are expecting rental income from your investment property and it is inhabitable due to repairs, you can opt for coverage that will help in these instances as well.
Peace of Mind
Finally, condo insurance provides owners with peace of mind. Whether you are worried about natural disasters damaging your condo, or if you are worried about losing your personal property from vandalism or theft, your personal condominium insurance policy can cover this.
With condominium insurance, you have peace of mind that you are protected in the event of any type of disaster or accident. It also gives you confidence that you will be protected financially when there is damage to your property.
Get Condo Insurance Quotes Today
As a condo owner, you must understand what you are responsible to cover. While your building has a master policy, you need additional coverage to protect your possessions and to protect yourself from other losses and exposures.
To get the best deal for your condo insurance, you can request a free condo insurance quote from an independent Insurance Agency.
If you are looking for a local insurance agency in Florida, Harris Insurance can help. We can help you find the best deal on condominium insurance. Contact us to learn about our condominium insurance and to get your free quote today.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
