A condo insurance policy is recommended for anyone who owns a condominium. However, if you are a first-time buyer, you might have lots of questions, from what it covers to what to look for and how it differs from homeowners insurance. Continue reading to find answers to the common condo insurance FAQs you may have.
How Does Condo Insurance Differ from Homeowners Insurance?
Both policies offer coverage for loss of use, liability, and personal property, but how they cover the dwelling is the only difference. A homeowners insurance policy covers the entire structure and other structures on the premises, whereas a condo insurance policy covers the interior of the unit, from the inside drywall to tiles, sinks, floors, etc.
What Does a Condo Association Master Insurance Policy Cover?
It covers the buildings and common areas of the condo association, such as pool areas, clubhouses, parks inside the community, etc.
Do I Need to Insure My Vacation Condo?
Yes, you must insure your property regardless of whether you are staying on it or not. The reason is that a disaster may strike anytime, damaging or destroying your property and belongings. In such circumstances, if your condo is uninsured, you must cover the hefty financial losses out of pocket.
What Is Loss Assessment Coverage and How Much Do I Need?
Loss assessment coverage is an additional endorsement that covers liability claims or damage expenses exceeding the coverage limit of your condo association master policy. Mostly, association policies have $1000 worth of loss assessment coverage, but the limit can be increased as required.
However, how much coverage you need depends on the type of condo association master policy you have and its coverage limit. In most cases, assessment coverage is to help pay the condo association’s deductible so that the policy will kick in to cover the loss.
If the master policy does not have enough coverage to reimburse for the losses, the condo association may assess the remaining expenses to the condo owners. While buying loss assessment coverage, make sure to have your insurance agent review your master policy to determine the adequate coverage limit.
Will Condo Insurance Cover My Unit’s Damage Caused by the Occupant above Me?
It depends on your condo association master policy. First of all, take necessary measures to stop further damage and then file a claim with your insurance agency. Your agent will start the investigation process by reviewing the master policy and contacting the insurance carrier of the occupant above you. If the negligence of the condo association or the owner above you has caused the damage, your insurance agent will subrogate the loss to the other carrier.
Connect with Us for All-Inclusive Condo Insurance
Whether you are a new condo owner or looking to customize your coverage, Jack Stone Insurance Agency will have you covered. Contact our insurance professionals today to learn more about our condo insurance or if you need assistance in choosing the right coverage for your property.