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.
The first question that you need to ask is what is covered under the condominium corporation insurance policy, and what will need to be covered under your personal policy. Generally, only items owned by the condominium corporation will be covered by their insurance policy. This includes stairwells, elevators, items in the lobby, hallways and external fixtures such as roofing.
Another thing to ask is what your condominium insurance covers. You need to know that upgrades to your unit, such as improved flooring, are not normally covered by the corporation policy. Like a homeowners policy, you may also need to make special arrangements to include luxury vehicles or items stored off the premises.
Because you have responsibilities to the condominium complex, you will need to make sure that you are able to meet those requirements through your insurance policy. Specific condo insurance policies reflect that in their wording, but you should make sure that the insurance policy you choose will mesh well with your unit holder responsibilities.
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.
Who is covering your condominium corporation? You may find that you can save money if you use the same company to insure your individual unit. Because insurance can be quite expensive in general, you may find that it is helpful to be able to find ways to save money wherever possible.
There are so many differences between condo insurance and homeowners insurance that most important questions should be to your insurance company or agent. How much experience has their insurance company had covering condos? Are they simply giving you a modified homeowner\’s policy, or are you getting one specifically designed to cover the unique living situation of a condo? The answer may tell you you need to look elsewhere for coverage.
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.
Author: Ken Henry has some great suggestions on finding the solutions to your insurance questions. Get homeowners insurance rates from the best companies, plus get an exciting tip sheet on auto and homeowners insurance