All you need to know about condo insurance
If you like apartment living and decide you want to own your own unit, then condominium living is probably for you. If you do buy a condo, you will need to insure, which makes it important to learn all you can about condominium insurance.
What is it?
Condo insurance is a type of property/casualty insurance that is similar to both homeowners and renters insurance. It provides coverage for your personal possessions and, depending on the type of policy, may provide coverage for some of the physical structures in your condo. COndo policies also provide you with personal liability insurance.
Who is it for?
Condominium insurance is for anyone who lives in a condo that he or she owns. If you own a condo but don't live in it or if you live in a condo unit that you don't own, you need different types of insurance.
How does it work?
Condo policies work like other types of property and casualty insurance. If you experience what you think is a covered loss, you have to file a claim with your insurance company. Covered losses usually include those caused by wind or hail, fire or theft. After you file a claim, an adjuster will evaluate it and determine what if any coverage you are entitled to. Depending on the situation, your insurer may issue you a check for damage minus any deductible you owe, or it may pay some of your expenses directly.
Types of coverage
There are two main types of condo coverage, and which one you need depends on what type of policy the building owner has. If the building owner has "bare walls" coverage, then you need a condo policy that covers floors, countertops, appliances and fixtures in addition to your personal property. If your building has all-in coverage, you only need a policy that covers your personal effects.
The major benefit of condo insurance is coverage for your personal possessions. Additional benefits include personal liability insurance coverage and coverage for the loss of use of your unit if it is damaged or destroyed.