How well do you understand your condo association’s insurance policy?
Have you read through the fine print? Do you know exactly what will happen if disaster strikes?
Many condo owners know that their association has insurance, but many struggle to understand the details of that condo insurance coverage – and for good reason!
The Basics of Condo Insurance Policies
Each condo association holds a different type of insurance policy. That makes it extremely hard for owners to understand.
Although the condo insurance plan says that they will rebuild in case of a disaster, what does that mean?
In some cases, it means that the insurance will cover rebuilding everything according to the same specifications as when you first purchased the property. If you made any upgrades, you’re responsible.
In other cases, it means that the insurance will only cover enough to rebuild the drywall. You’re in charge of building everything else, including the paint, flooring, cabinetry, plumbing/lighting fixtures, and everything else.
In either situation, you’re faced with a hefty bill if something goes wrong and your condo is destroyed.
Where Homeowner’s Insurance Steps In
Having a homeowner’s policy is helpful for three core reasons.
- It gives you liability coverage.
- It covers the destruction of your contents and personal property.
- It can include water backup coverage.
Liability Coverage
You never anticipate something going wrong, but accidents happen. Liability coverage protects you from having to pay for the destruction of your surrounding condos if a fire breaks out and is deemed your fault, or if there is a flood that starts in your condo and ruins other condos.
The cost of repairs to other condo owners properties can add up quickly. With homeowner’s insurance, you can cover this cost, so you’re not faced with a shocking expense after an accident.
Contents Coverage
You also have your investments to consider. The furniture you bought, your computer, television, and other electronics all need to be replaced. If you rely on your condo association’s insurance coverage, you won’t be able to cover the cost of replacing your personal property.
That’s where homeowner’s insurance coverage begins. With coverage for your property, you won’t be faced with having to rebuild your home in case of an emergency.
Water Backup Coverage
Many condo claims involve water damage. If the water comes from your unit, the one above, or the one below having coverage for water back-up eliminates many of the water exclusions included in your policy. With water backup coverage through homeowner’s insurance, you are covered for the cost of removing the water and repairing the damage.
Get to Know Your Policy Before it’s Too Late
Knowing your policy is important. Don’t wait until disaster strikes to find out how well you’re covered. By then, it’s too late.
Contact our team for a review of your condo association policy. We’ll tell you the gaps in your coverage and offer you a loss assessment so that you know what’ll get fixed and what you’re responsible for repairing in case of an emergency.
