Buying a condominium is similar to buying a house, but some elements of condo living are more akin to apartment living. For example, most condos are adjacent to others, and owners often share one or more walls, living in very close proximity to their neighbors. In larger complexes, condo owners may also have neighbors above and/or below them. Many consumers enjoy the community-centric lifestyle that comes with living in a condominium complex, at least until something goes wrong. Condo owners may find out – a little too late – that they were harboring some major condo insurance misconceptions. Here are three common condominium insurance myths and facts.
Myth #1: “The condominium corporation’s insurance will cover damages to my unit.”
While partially true, a condominium corporation’s master policy most likely excludes more than it includes when pertaining to an individual owner’s property. In the event of damage to an individual unit, the master policy will cover repairs and restorations that leave the unit in the original condition in which it was built. However, any upgrades made to the unit, such as flooring, cabinetry or countertops would not be covered under the master policy and would instead need to be insured under a personal condominium insurance policy. Additionally, many condo corporations’ insurance policies have extremely high deductibles. In some cases that deductible may be split among a number of residents, but in other cases just one condo owner may be responsible for the entire amount – another reason to seek additional insurance coverage for your condo.
Myth #2: “I have nothing important to insure, so I don’t need a personal condominium insurance policy.”
What many condominium owners don’t realize is that their personal condominium insurance policy can cover more than just their personal property. As previously mentioned, condo insurance can also assist when the owner needs to pay a deductible for the master policy. Depending on the policy, condominium insurance can also cover the owner’s interior furnishings, possessions and even borrowed items in the event of loss due to theft or fire. Additionally, it can protect the owner from liability claims and lawsuits in the event that someone is injured inside the owner’s condo, or in the event the condo owner causes damage to someone else’s property.
Myth #3: “My basic condominium insurance covers everything.”
Basic condominium insurance does offer extra protection for condo owners, but like most insurance policies there are some exclusions. For example, in the case of water damage, some types of damage such as burst or leaking pipes may be covered, but flooding due to weather events is typically excluded and would require a separate policy. In addition, basic condominium insurance may not cover the belongings of or damages caused by a rental tenant or a vacation rental.
About The Insurance Store
The Insurance Store was created to bring ease and agility to Surplus Lines coverage placement for agents serving commercial and personal lines clients in specific regions throughout the country. We provide a wide variety of packages for hard-to-place products and risks that include earthquakes, floods, hail, and more. To learn more about how we can protect you in the event of an unforeseen event, contact us today at (425) 313-9605.