Owning a condo is unlike owning any other type of property. For starters, you may own your condo, but you also share responsibility for common areas in your building with your neighbors. Together, you pay for maintenance, upkeep, and insurance for losses – one less burden for you to bear. However, your condo fees do not completely alleviate your risk. You are still responsible for purchasing your own individual condo insurance to minimize your personal losses and mitigate your liability exposure.
For example, imagine a negligent neighbor left a candle burning, catching fire to their unit, and causing severe fire and smoke damage to yours. It will take weeks to repair the inside and rid it of smoke damage. Most of your belongings are ruined, including your rugs, furniture, mattress, and entire wardrobe. Furthermore, you are forced to live in a hotel, as your condo is temporarily uninhabitable. Does your condo insurance cover your losses, or will you be left out in the cold? With the right insurance, you could relax knowing your unit will be repaired, your belongings replaced, and your temporary lodging and meals are covered, too.
Types of Condo Insurance Coverage
Like other types of property insurance, condo insurance generally comes in a package policy that includes several different types of coverage.
Coverage for Your Unit
Your condo association maintains a master insurance policy that provides coverage for shared areas within your building and on the property. Your personal condo insurance should pick up with coverage where your master policy leaves off. This might include protection for your condo’s flooring, interior walls, cabinetry, and any upgrades you have made to the unit when they are lost or damaged by covered events. Examples include fire, smoke, wind, hail, theft, and vandalism.
Everything inside your condo – from your sofa and wall art to your toaster and flat-screen television – is at risk of loss in a fire or other covered event. Your personal belongings coverage helps reimburse you for your losses. Be sure to take a home inventory and keep a list of your valuables and belongings in a safe place in case you ever need to file a claim.
When the limits on your condo association’s master insurance policy are reached, shared liability and property damage losses may be passed on to members in the form of loss assessments. Your insurance can include loss assessment coverage that helps cover these unexpected expenses.
Loss of Use
If damage to your condo leaves you without a place to live, your loss of use coverage can help cover the cost of temporary lodging while your unit is undergoing repairs.
If your child accidentally runs over a neighbor’s pet with her bike, or a party guest slips and falls in your kitchen, liability insurance helps cover the cost of claims against you. Liability is coverage for accidents in your condo, as well as injuries and property damage you, your child, or your pet cause as a result of activities outside your home.
Save More Money on Indiana Condo Insurance
No one wants to pay more than they have to for condo insurance. At Insurance Broker Direct, we try to keep more money in your pocket by maximizing your savings. In addition to helping you compare coverage from multiple insurers, there are many other ways of saving money on your condo insurance. Examples include:
- Raising your deductible
- Installing home safety and security features (i.e. alarm, fire extinguisher)
- Combining your condo insurance with other coverage lines (i.e. auto insurance)
- Improving a poor credit score
If you own a condo or will be purchasing one in the near future, contact Insurance Broker Direct to discuss your coverage options and request your free quote. We look forward to serving you soon.