Condo Insurance FAQ

Izvor: KiWi

Many condo owners who do not invest in condoinsurance believe that their masterinsurance policy covers their property. That is false; a masterinsurance policy covers the building as a whole, but as for their rented property, they will need condoinsurance. If you want safety and protection for your condo against life's unfortunate events, condoinsurance is a wise precaution.

Here are some frequently asked questions and answers regarding this type of coverage:

Do I really have to get condoinsurance? What does it cover?

Condoinsurance 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.

Is flood insurance included in condoinsurance?

There are some condoinsurance policies that include floodinsurance. Many do not. Some offer it as a rider. It is in your best interest to talk to aninsurance agent about purchasing additional coverage.

Is more condoinsurance 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 condoinsurance is appropriate?

Replacement coverage should be included in your condoinsurance 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 condoinsurance, remember that eachinsurance 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 condoinsurance for the same amount that you bought your unit for. Remember that only everything inside of your property should be under your condoinsurance policy. The rest should be handled by your association.

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