What Owners Should Know About Condo Insurance
Insurance policies that cover one’s home and personal property are available for both renters and homeowners. But condo insurance is a third category designed for those who live in condominium units and only need insurance to cover their segment of the property. These policies typically cover personal property as well as certain parts of the condo’s structure.
Why Buy Condo Insurance
Condo insurance covers the replacement cost of belongings that are stolen or damaged. It also covers legal fees, medical bills, and other costs that may arise if a person is injured on the property. Some policies cover temporary housing and moving costs if the unit becomes uninhabitable because of fire or flood.
Choosing the Right Policy
Condo owners must carry the minimum insurance coverage required by the mortgage lender and the condominium association, which may vary by community. Researching and following these guidelines is important since the condo insurance policy will fill any gaps in the association’s overarching policy for the property, which usually covers major structures and systems.
Most basic condo policies cover:
– A portion of the physical structure depending on what the condo association’s policy covers, including everything within the unit’s four walls but not exterior structures such as the roof and siding
– The cost to replace personal belongings, including added coverage for valuable items such as jewelry or antiques
– Personal liability or legal fees
– Relocation fees if the unit is uninhabitable because of covered repairs
When buying an insurance policy, individuals should consider the premium, which is the cost of the policy; the deductible, which is the upfront cost he or she must pay out of pocket for a covered claim; and limits that describe the maximum coverage for a specific claim. Cash-value coverage, which tends to be more affordable, provides the current market value for damaged or stolen property. Replacement-cost coverage provides the amount it would cost to buy these items new.
With Velox Insurance, condo owners across nine states can compare policies online in real time without speaking to an agent. This results in cost-effective condo insurance coverage that focuses on affordability and fast, reliable service. Potential clients interested in condo insurance policies and rates can contact us at 770-293-0623 or complete our online form.