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How To Buy Home Insurance For A Condo

2010-05-24

So you've bought yourself a condominium. You've signed all the papers and have moved in all of your valuable possessions. You're ready to enjoy all of the benefits of condo ownership and all of the amenities your complex has to offer. But before you can hang out by the pool or work out in the exercise room, you need to make sure that your investment and your things are protected. You need condo insurance.

Though it has characteristics similar to those of renters' insurance and homeowners' insurance, condo insurance is unique and is in some ways more complex due to the nature of condominiums and condo ownership. While you may own your individual unit, the building in which your unit is in, and such things as the roof, hallways, plumbing, and electrical wiring, are owned in common with all of the other unit owners. Separate policies are required to cover the property which you own and that which is owned in common.

Insurance coverage for the common elements of your condominium complex is typically obtained by the condominium association. You are ultimately responsible for obtaining coverage for your unit. However, before obtaining a condo insurance quote, it is important for you to review and understand exactly what, and what is not, covered by the association's master insurance policy. Many master policies just cover risk of damage and loss that occurs to and in the common areas only, meaning that anything that happens within the four walls of your unit, whether it be to your furniture, the interior walls and ceilings or the cabinets and appliances, is not covered and is your responsibility. Injuries which happen to your guests and visitors while in your condo, and damage which you may cause to neighboring units, are also on your shoulders.

Once you have figured out the extent of coverage provided by the association's master policy, you need to determine the kinds and amount of coverage you need. There are five basic types of coverage that can be obtained: coverage for the unit itself, coverage for personal property, coverage for loss of use, coverage for personal liability and coverage for medical payments. You also need to assess the dollar amount of coverage you need to protect your unit and its contents. When looking at how much coverage to get, don't only look at the cost of the unit or the estimated value of your personal possessions such as furniture and appliances; also take into account any improvements you have made to your condo.

All of the foregoing should be considered when getting a condo insurance quote so you can ensure that you get the right coverage at the right price.