If you have recently made arrangements to purchase a condo, you will need to think about condo insurance. This is not only to protect your own investment, but to help meet your responsibilities as a unit holder within the condo corporation.
A condo complex will usually have insurance through the condominium corporation and you may think that you are covered by that. This is definitely not the case. The insurance held by the corporation will not cover the contents of your condo. Only the items which are owned by the condo corporation are covered by the condo corporation policy.
Generally, while you will need to cover everything inside your condo unit, including structural upgrades, you will not need to have elevators, roofing or other items included in your policy. Upgrades may include brushed concrete flooring, improved cabinetry or appliances, and better windows or floor tiling. If you have luxury items, you may need a rider. This can make sure they are insured but it can add to the cost.
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.
Many insurance companies will drop their rates if you are also insuring a vehicle or other items from them. A bundled rate can be good, but don’t worry if you are not insuring anything else. You may still be able to get a deal if you go to the company which is also insuring the condo corporation. They may be able to give you a better group rate than a stand-alone policy through another company.
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.
Condo insurance does not need to be intimidating or break the bank. By shopping around, comparing rates, and exploring your options, you should be able to ensure you are well taken care of.
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 get an exciting tip sheet on auto and homeowners insurance
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