Five Facts about Condo Insurance
Owning a condo is like owning an apartment. The difference is with an apartment, you’re usually renting. But with a condo, you usually have to purchase the space. There are a few other differences as well, like the kind of insurance you need.
1. Condo Insurance is Property Insurance
Condo insurance is property insurance for people who live in condos. Depending on the coverage, the policy may cover your personal belongings or it may cover some of the fixed items in the unit. It may offer liability coverage and coverage for loss of use.
2. Condo Insurance is for People Who Own Condo Units
Condo insurance is for people who own their own condo and live in that unit. If you’re renting the unit from someone else, then this insurance would not apply.
3. Coverage Works like Most Insurance
When your condo unit undergoes damage, you must file a claim. An insurance adjuster will examine the damage and decide what financial liability the insurer has. You will either receive a check or the insurance company will pay for repairs — minus your deductible. If the unit is unlivable, then your insurer will pay for you to live somewhere else temporarily.
4. There are Several Types of Coverage
The type of coverage you need depends on your building owner. If the building owner has bare walls coverage, then it means nothing inside your unit is covered. That means you need a policy that insures those things. If your building owner has all-in coverage, then you only need a policy for your belongings.
5. There are Several Benefits
Condo insurance can save you a load of money following a mishap. When you’re covered, you know your possessions are protected against loss from a fire or other devastating event. Other benefits include personal liability coverage and funds to live elsewhere should your condo need extensive repairs.