As a condo dweller and owner, condominium insurance is what safeguards the interior of your unit and many appliances and fixtures within. Condo insurance also offers liability protection should someone be injured while on the premises.
It is important to note that most lenders will now mandate that borrowers obtain condo insurance coverage for their interior spaces. Damage to a condo’s interior or an injury to a third party visiting your unit can often put the lender’s investment (i.e. your loan) at risk.
Generally, the policy of a condo building’s HOA master policy will cover that which is related to the exterior wall and outwards into all common areas. Condo insurance is often classified as a ‘bare walls-in’ policy, and normally insures the premises and any personal belongings inside. Events that are covered by this kind of policy include fire, lightning and other severe weather, damage from smoke, burglary, vandalism and some incidences of flooding.
Remember that if the entire building you live in burns down, your association’s master policy is going to cover the outside walls and common areas. You’ll be on the hook for replacing or repairing interior items such as fixtures in your unit, kitchen and bathroom cabinets, and bathroom sinks and toilets, to name just a few.
Most condo owners likely have no clue that should there be a claim under the HOA’s policy, they will likely also be mandated to pay for their share of the deductible. This deductible is rarely small change, as HOAs typically attempt to rein-in master policy premiums by spreading the expense out among its members. For instance, a $50k deductible is not uncommon. For a typical building with 50 units, that would be an eye-popping $1,000 per condo. Having good condo insurance means that such costs can be handled for you.
Whether you’re mandated to obtain this coverage or not, you are likely well-served to insure your condo and personal property with proper condominium insurance coverage. Speak with one of our insurance professionals today for more details.