How Condo Insurance Protects The Home’s Owner
Condo insurance is a policy that condominium owners purchase to protect their interest in their property. These policies cover the condo owner’s property and liability exposure. While the condo association has a master policy that covers the structure, it does not cover the contents of each unit.
There are two main types of condo insurance policies.
The first is for people who live in the condo they own. If the owner rents the condo out to someone else, there is a different type of condo insurance policy specifically for that situation. In general, the cost is lower for a policy covering someone that lives in the condo they own. This is because owners, in general, take better care of their home and are more cautious than renters tend to be.
A condo insurance policy covers everything “from the paint in.” This includes belongings such as appliances, cabinetry, carpets, electronics, clothes, and so on. When buying a condo policy, the owner needs to determine how much content coverage they need to replace everything if something like a fire were to occur.
Condo insurance policies include liability coverage. This protects the owner of the condo if someone were to get hurt while in their home. Another coverage is loss of use. If there were to be a fire and the home can’t be lived in, for instance, loss of use covers the expense of staying in a hotel while repairs are made.
Condo policies cover perils such as fire and smoke, theft, vandalism, lightning, and explosions. They do have exclusions, though. No condo policy covers damage caused by earthquakes or flooding. They also exclude intentional injuries to others, wear and tear, sewer backups, and damage from rodents, birds, and insects.
The cost of a condo policy depends on several factors. Among these is where you live. Places that have better fire station coverage cost less for condo insurance than those in remote locations. How much coverage you choose for content and liability coverage is reflected in the rate. Every condo insurance policy has a deductible, which is the amount you pay if there is a claim. Lower deductibles cost more than higher ones.