Since you worked hard to buy your condo, you know how important it is to protect your investment in both your condo and all of your personal property. Condo insurance helps you keep a disaster that destroyed your belongings from becoming a disaster that can destroy your finances. Jeremy White insurance helps you understand what condo insurance coverage you need and how to choose the policy that’s right for you. Whether you have questions about coverage or are trying to find the best price, you’ve come to the right place.
Why Quality Coverage Matters
Not all condo insurance companies are equal. Some might make it more difficult to get your claim approved or take longer to pay claims. In addition to service-related issues, not every company offers the same set of coverages and limits.
When it comes to price, the lowest-priced option won’t always give you the best value for your money. In addition, insurance pricing can vary based on your particular circumstances, so the company that offers the best price in one situation may not offer the best price in another. Your independent insurance agent can help you figure out which company to choose and ensure you’re getting a fair price.
Condo Coverage Options
Condo insurance is actually a package of several different types of coverages. Some are standard, while others are optional. You will also need to select limits and deductibles for different types of coverages. Here is what you should look for.
Coverage for Your Unit
It’s important to understand what your condo association’s insurance policy covers and what it doesn’t. Generally, your condo association covers the building outside of your unit, and you’re responsible for insuring the inside of your unit. The insurance you get is often known as a dwelling or building property coverage. Exactly what counts as part of your unit or part of the condo building depends on what type of coverage your condo association has. You will need to get a copy of its master policy to see what it covers.
There are three main types of condo association policies.
- Bare walls coverage means that your condo association policy covers everything outside of your walls, floors, and ceilings. You cover everything that’s inside of them, including things that are attached to them. This can include things like your appliances, plumbing fixtures, and carpets.
- Single entity coverage is a step up from bare walls coverage. It includes your original fixtures and appliances. If the condo builder installed cabinets and a stove, those are generally covered. However, single entity coverage generally doesn’t cover any improvements you or previous owners made. If you replaced your original fixtures, you might be responsible for insuring them.
- All-inclusive coverage generally works as its name suggests. It may cover everything that’s permanently attached to your condo, such as appliances, cabinets, and carpeting. It can include both original fixtures and your improvements. If your condo association carries this level of coverage, you may not need dwelling or building property coverage. Ask your insurance agent to be sure.
Coverage for Your Personal Property
Your personal property is everything you own in your condo but not permanently attached to it. This includes things like your furniture, clothes, electronics, dishes, and small appliances. You will generally need to include a dollar amount of coverage, so it’s important to have a good inventory of all of your items.
There are two standard options for covering your personal property. One is to have coverage for the current value of your items. This means what a used item of similar age and quality would typically sell for. You can also upgrade to replacement cost coverage. This covers you for the cost of going to the store and buying a brand new replacement for what you lost.
If a guest gets hurt in your condo, your dog bites someone, or you accidentally injure someone, you could be sued. Liability coverage pays for these types of claims as well as your legal defense. It’s included as part of condo insurance because you may have to sell your condo if you don’t have money to pay for the lawsuit if you lose a lawsuit. Read your policy carefully to see exactly what situations are covered.
Loss Assessment Coverage
Suppose a disaster strikes your condo building and causes damage above your condo association’s insurance limits. In that case, your association has to pay a large deductible, or the loss wasn’t covered by insurance; your condo association may charge you a loss assessment to pay for those repairs or to rebuild the association’s cash reserves. In addition, loss assessment coverage can help pay for a surprise assessment that you may not be able to afford.
Keep in mind that the assessment will usually need to be due to a covered loss such as a listed disaster. This coverage does not pay for other assessments, such as for a routine roof replacement.
Condo Insurance Discounts
The good news with condo insurance is that it’s often more affordable than you think since the condo association pays for the building coverage. Of course, you still want to get a good value for your money.
Jeremy White Insurance helps you compare rates and find a policy that meets your needs at a competitive price. You may also be able to take advantage of other discounts, such as bundling with your auto insurance.