If you have recently purchased a condo, or are looking to purchase one, there are things that you should know about living in a condo that makes it very different than a home. Because of these differences, condo insurance is also very different. Knowing what the differences are can save you financial and emotional heartbreak should the worst happen.
The first question that you need to ask is what is covered under the condominium corporation insurance policy, and what will need to be covered under your personal policy. Generally, only items owned by the condominium corporation will be covered by their insurance policy. This includes stairwells, elevators, items in the lobby, hallways and external fixtures such as roofing.
Another thing to ask is what your condominium insurance covers. You need to know that upgrades to your unit, such as improved flooring, are not normally covered by the corporation policy. Like a homeowners policy, you may also need to make special arrangements to include luxury vehicles or items stored off the premises.
You will need to ask your corporation some questions as well, in order to find out what your unit holder responsibilities are. This will enable you to select a condo insurance policy that will mesh well and allow you to meet your responsibilities should your unit or building become damaged. You will also need to ask the corporation what the minimum amount of coverage required is. This is part of your obligations as a unit holder, as some buildings may require you to have higher coverage than others. Because a condo corporation has the right to pass by-laws that govern its unit holders, you are forced to abide by any decisions regarding your insurance policy and coverage that the corporation has set out.
There are many different areas where condo insurance may be more affordable, and there should be some wiggle room as far as pricing. One thing to ask about is the distance at which personal injury claims are covered under your insurance policy. A good range is one hundred and fifty feet. If the injury happens farther away than that it should be covered by the corporation policy. Since personal injury claims can be expensive, this may help you to lower your insurance costs.
Who is covering your condominium corporation? You may find that you can save money if you use the same company to insure your individual unit. Because insurance can be quite expensive in general, you may find that it is helpful to be able to find ways to save money wherever possible.
As you can see, condo insurance coverage can be somewhat more complex than a regular homeowner’s policy. You may have options as to your coverage and the details of your policy, such as a higher or lower deductible. Make sure that you are getting a policy specifically designed for a condo living situation so that you know your coverage is up to date and comprehensive enough to cover you properly.
By asking the right questions in the right areas, you can make sure that you are getting the best condo insurance policy to cover you and your items. With luck, you will never need it. But in the event that you do, the last thing you want is to discover that there are problems or gaps that leave you out in the co
About the author: Ken Henry can help you find the solutions to your insurance questions. Get homeowners insurance advice and quotes from 5 top companies, plus save big money on auto and homeowners insurance
Tags: budget, business, condo insurance, family, finance, home, home insurance, insurance