If you own a condo, you should seriously consider condo insurance. There are a number of reasons why this coverage is recommended, most notably for the financial assistance it provides. Condo insurance is also low-cost and affordable for almost any budget.
Why Is It Needed?
You may think your condo and its contents are covered by the master insurance plan owned by the condo association but it is not. The condo association’s plan covers the structure of the building itself and any common areas. Your private area is your personal responsibility. If anything happens in your area, such as a small fire, then you are responsible for paying for repairs and replacing any belongings. Your condo association has no legal responsibility to assist you. And if you have a mortgage on your condo, your lender will most likely require insurance.
The coverage you need is decided on an individual basis. Property coverage is broken down into content and building improvements. You will want adequate coverage for everything you own, and enough coverage to replace or repair everything attached to the walls, floor, and ceiling. You will have to determine exactly how much you think you need by speaking with one of our experts. It is a good idea to take an inventory and place a dollar value on your belongings.
Another important option is liability coverage. This provides financial assistance in case someone is hurt in your unit or something happens that creates property damage in an attached unit. For instance, a leak might cause a flood in the unit directly below you.
If price is a concern, you can raise your deductible in order to pay a lower premium. Just remember that the higher the deductible, the more you have to pay out of pocket when filing a claim. But just as homeowners need insurance, so do owners of condos. A condo is a significant investment and needs to be properly protected.