Why Purchase Condo Insurance?
Good condo insurance has some important differences from traditional homeowners’ insurance, similar to the way the condo units themselves vary from a typical single-family home. Many mistakenly believe that the condo association (HOA) policy will cover the unit owners, but this is mostly incorrect. Though the HOA coverage will usually have some insurance protection for all its members’ shared areas, it is important to research the exact level of coverage it does provide in order to assist one when he or she is in the market to purchase the additional protection of a condo insurance policy. Indeed, the HOA coverage will usually end at a unit’s exterior walls. The condo owner is then in charge of his or her interior walls, appliances and fixtures, cabinets, personal items and so on. The HOA basically protects the association from any financial losses arising out of liability for accidents and/or injuries but, again, provides little in the way of protecting individual owners.
Condo homeowner insurance is engineered to safeguard the condo owner from the multitude of possible losses that are not covered by the usual HOA coverage. Essentially, one’s owned property is what is covered with this type of policy. If the condo homeowner were to be found liable for any damages, this is the policy will help. For instance, if a fire were to start in your home’s kitchen and then spread to the neighboring unit, this insurance can cover the damages.
Good condo insurance can go a long in safeguarding the owner from a wide range of potential losses that are not covered under the HOA plan, such as damage from wind, fire, water or losses associated with theft, vandalism and the like. And, in some cases most importantly, this policy can provide crucial help should the condo homeowner be found liable for any injuries in his unit or for damages or injuries in other units. For instance, if a bathtub overflows in your unit’s lavatory and flood your downstairs neighbors unit, this insurance can compensate for damages.
Should a condo owner be confronted with a loss, then he or she will then need to file a claim with both the condo insurance provider and, likely, with the HOA’s provider as well. (The latter would be the case when damage occurs to both the interior and exterior components of the building.) It is important to note that additional policies will most likely be required to protect the policyholder from floods and earthquakes.
Carrying a condominium insurance plan can extend many considerable benefits to the condo homeowner. Obtaining the proper coverage can safeguard one from the financial consequences of damage, liability lawsuits, theft of any personally belongings and more.