It’s an exhilarating experience to make a condo purchase. You’re confident in your investment, and you’d like assurance that it’s protected. It’s a smart option to get condo insurance, but you need to know the fine print of how insurance works to make sure you have the coverage you need.
Even though many condo owners take the sensible step of purchasing insurance, plenty also make blunders that result in substantial losses. The expense of insurance should not prohibit you from protecting yourself and your family.
What Does Condo Insurance Cover?
There are two types of condo master policies:
- All-in — also known as “single unit,” is the type of insurance that covers condo fixtures such as wiring, plumbing, carpets, and appliances. However, it doesn’t include the personal items that you have inside the room.
- Bare walls-in– is the exact opposite of the policy mentioned above. Bare walls-in doesn’t cover anything inside the four walls that compose your room. It can include your plumbing and electricity, though, but that still depends. Review your organization’s master policy first so you can decide on the needed policies that your condo insurance should cover.
You will need to purchase more personal condominium insurance if your association has a Bare walls-in type as the condo master policy.
How Does Condo Insurance Work?
The condo association master policy or the HOA policy covers the damages and losses that will incur in the building, external features, or grounds. Your condominium policy, however, is what protects your belongings, appliances and might include attached features inside the unit and installed fixtures. During the events of covered losses, such as fires or break-ins, you are required to file your insurance company or the condominium association’s insurance company a claim.
Does Condo Insurance Cover Special Assessments?
The minimum condo insurance, unfortunately, does not cover special assessments. However, several policies include exclusive assessment coverage for those “named perils.” To cite an example, if a fire breaks out in your condominium that provides for the common areas, the association’s unit owners might receive a notice of individual assessment to cover the damages caused by the fire.
However, special assessment insurance, also named the “title insurance,” is a separate purchase. It covers all the other special assessments that are not included in your condo property files and documents.
Does Condo Insurance Cover Mold?
Most of the time, insurance companies exclude mold coverage in their policies. However, you can still successfully file a condo insurance claim with your insurance company under specific circumstances. A good example is when a pipe suddenly breaks in your unit while you are away on vacation. Upon your return, you see mold and water all over the room. Your insurance company will most likely cover the damages and mold remediation since peril caused it with a scenario like that.
Does it Cover Damage from Hurricanes?
If you own condo insurance, you will have coverage from extreme storms, including windstorms, tornadoes, and hurricanes that cause damage to your belongings and the condo’s interior unit.
However, take note that your condo insurance company might not always cover damages to wiring, plumbing, and fixtures. Some policies include fixtures in their premiums, but others only have bare walls.
A condo policy covering these objects can be an option if your primary coverage is a “bare walls” policy. It’s critical to know what premiums your insurance provider offers to avoid getting caught off guard.
Does the Coverage Include Theft?
If you have personal property coverage as part of your condo insurance, you will have protection in the event of a break-in or robbery. Even stolen goods from your automobile might qualify for coverage under your policy’s terms with the right insurance.
However, particular precious objects, including collectibles, art, and jewelry, might be prohibited or have certain limitations, and you might need extra endorsements or riders to gain complete coverage. Look for an independent agent to help you find the best deal. Look for an independent insurance agent to help you find the best deal.
Your personal goods might be worth more than you think if you conduct a thorough assessment of them and evaluate their worth. Residents of condominiums are often taken aback by how much they have to safeguard.
When determining if you are adequately insured, make sure you match your policy to your inventory to ensure you have adequate coverage. It’s a good idea to make an itemized list of everything you possess to ensure that in the case of losses, you’ll know exactly what to claim.
Final Thoughts
You can get an idea of how much insurance you should get by gathering an inventory of all your possessions. Check how much their costs would be in terms of replacement during instances like burglaries or fires. To cut it all short, make sure you have the condo insurance policy you need.
