Good Condo Insurance Coverage
Condominium insurance has some innate differences from regular homeowners’ insurance, just like the condo dwellings themselves are different from a single-family home. Though the HOA likely has some insurance that may protect residents, it is important to remember that the level and extent of this coverage is limited and not usually that helpful to individual condo owners’ interests. It is wise to consider the additional protection that good condo insurance provides. With HOA coverage the protection generally ends at the exterior walls of your unit. You, as the condo owner, are responsible for any interior walls, fixtures, appliances, cabinetry, and personal property. The HOA basically protects the condo association from liability for any accidents or injuries on site but does very little in actually protecting individual condo owners.
Condominium owner insurance is designed to protect the condo owner from any potential losses outside of the limited coverage of the HOA insurance. Owned property is only what can be covered with this type of policy. In situations where the homeowner (and not the HOA membership) is found liable for damages, this policy is what can help here too. For example, if a kitchen fire in your unit passes on to your neighbor’s unit and somehow damages it, this insurance has you covered
Condo insurance protects the condo owner from losses resulting from wind, fire, theft, vandalism, water damage and other potential events or actions. Should a condo owner face a loss, he or she will likely be required to file a claim with both the condo insurance provider and the HOA’s company too, as some claims will include damage to both interior and exterior areas. Keep in mind these policies don’t provide coverage for flooding or earthquakes.
There is the “kitchen sink” policy for condo owners that covers just about everything in the unit, including personal items and also gives protection for any liability for injury or accidents that might happen inside the unit. A “bare walls” policy is what covers all that is outside of the unit, including the exterior walls, but nothing that is inside the condo walls. This is what your HOA carries usually.
It is easy to see how important the benefits of condo insurance are for condo homeowners. Folks receive protection if there is damage or theft of any personal property. There are the certain other protections from loss or liability should you be away from your condo dwelling that also are available.
Keep in mind that when you file a claim on your condo insurance, it is incumbent upon the condo owner to first pay the deductible before the insurance provider will pay for the balance of the costs up to the coverage limits. The deductible amount varies and is usually one to two percent of the coverage total. Remember all this when you buy the condo coverage that best suits your needs.