What you need to know about condo insurance
If you like apartment living, you might want to invest in buying a condominium. Condo ownership is common in bigger cities. Owning a condo is a little different than owning a house, however, including the type of insurance you need.
What is it?
Condo insurance is a type of property and casualty insurance that is similar in some ways to homeowners insurance but also has some elements that are similar to renters insurance. It covers your possessions, loss of use of the unit and provides you liability insurance. It may also cover interior fixtures of the condo such as walls, floors and counter tops.
Who is it for?
Condo insurance is for anyone who owns a condo and lives in it. If you rent the condo out you carry another type of insurance. If you live in a condo you don’t own, then you need renters insurance rather than a condo policy.
How does it work?
A condo policy generally works like other property and casualty policies. If you experience what you think is a covered event, you must contact your insurer to submit a claim. An adjuster will evaluate the damage, determine if the claim is valid and then offer you a settlement minus any deductible you own. If your condo is unlivable, your insurer will help you find and pay for other living arrangements. If it is a liability claim, your insurer may help you with any court case you face.
Types of policies
There are essentially two types of condo coverage, and which one you need depends on the type of coverage the building owner carries. If the owner’s insurance is what’s called “”bare walls”” coverage, then you need a policy that covers your internal fixtures and walls as well as your possessions. If the building owner carries “”all in”” coverage, then you just need insurance to cover your personal things.
The major benefits of condo policies are the two types of coverage they provide. You know that if your condo is destroyed it will be rebuilt and your possessions will be replaced. If someone is injured in your condo, you know your liability insurance will cover you.
Good Condo Insurance
As many prefer the numerous conveniences of condominium living over the hassles of owning a typical single family home, it is understandable that there is a significant portion of the population that invests in condo ownership. This is even more commonplace in the larger metropolitan areas. It is a different experience in owning a condo, however, and this includes the kind of insurance that is best suited for it.
Condo insurance is a kind of property and casualty coverage that is not much different from homeowners insurance but it does have some specialized elements that can be quite similar to renters’ insurance. Condo insurance covers your personal possessions, any loss of use of the dwelling and also offers the often crucial element of liability coverage. It can also cover fixtures and appliances within the walls of the condo and such things as walls, flooring and even counter tops.
Condo insurance coverage is for those who both own a condo and live in it. Should you be renting out your condo to someone, then it is incumbent upon you to obtain a different type of insurance policy (landlord insurance). If you live in a condo unit that you do not own, then you would need to purchase renters insurance as that is what you are in this case, namely a tenant as opposed to an owner.
Condo policy coverage generally functions like other property and casualty policies. If you have a covered event occur an experience some kind of loss then you must contact your insurance provider to submit your claim. Next, an adjuster will visit in order to evaluate the damage and to determine the validity of the claim. Should everything be acceptable, then you are offered a settlement less any deductible you will owe. Should the condo be uninhabitable, your insurance provider might then assist you in finding and paying for other lodging during the time of repair or replacement of the unit. If the issue is liability, your insurer will likely be able to help with the court costs as well, depending on your coverage.
There are basically two kinds of condo coverage. The kind you choose will often depend on the kind of coverage the building owner already has. If the owner’s insurance coverage falls under the category of “”bare walls,”” then you will likely need a policy that protects your inside fixtures and inner walls as well as your personal belongings. If the owner has “”all in”” coverage, then you will be fine with just the insurance to cover your personal items.
The major plus of condo policies are the two kinds of coverage they extend. There is also the priceless peace of mind inherent in knowing that your condo investment is protected if it is destroyed and if your possessions need to be replaced. Also, should someone be injured in your condo, you are well provided with your liability insurance to safeguard you. Insurance indeed can ensure your financial future is bright.