Condo or Condon’t — Condo Insurance
You’ve taken the plunge and opted for condo or townhome life. Now that the papers are signed, it seems like everything is taken care of for you—building maintenance, roof repairs, landscaping, insurance, etc. It’s time to relax because everything is covered, right?
Not quite. The insurance policy provided by the condo association covers the building structure and common areas, but what about potential structural damage to your unit and covering your belongings? Are your contents and liability covered? Do you have enough loss assessment coverage? Is your policy wall to wall or?
Without a personal condo insurance policy, you could be left high and dry if your unit floods, is damaged in a fire, etc.
Many associations in an effort to keep prices down have taken policies with large association loss assessment deductibles – most likely your association has a large deductible and reduced coverage. Sadly, because the vast majority of residents don’t review or understand their policy they won’t find out they have large gaps in their coverage until claim time.
Most condos need two insurance policies.
Master Policy: Generally provided by your condo association, this policy covers the physical structure of the building, including basement, roof, walls, elevators, lobbies, etc. Coverage usually includes both physical damage and liability. Get a copy of the policy so you know what’s covered.
Personal Condo Policy: This will cover additional structural damage to your unit, including cabinets, appliances, personal belongings, and more. This also covers living expenses if you fall victim to a fire, theft, or other covered disaster. Many insurance carriers offer enhancements that include personal property protection in your condo insurance policy. Policies with full Value Contents protection will pay the full replacement cost of your belongings, not just what they are worth today. Sometimes the difference between a policy with great coverage and a policy with little coverage is $10-$60 – which seems like a real bargain at claim time.
Other coverage to consider:
Umbrella Policy: If someone were to trip and fall inside or near your condo, they could sue both you and the condo association. Umbrella provides additional layers of liability protection and can protect against lawsuits that target both your current and future earnings.
Flood insurance: Read the fine print on your policy. They often won’t cover damage due to these disasters. Additional coverage may be required if you live in a prone area.
If you’d like a review of your policy please call 612.460.7796 and speak with a condo insurance specialist.
Reference: Sea Pines real estate.