Condominium insurance is another type of property insurance that, in this case, provides financial protection for those who own and live in a condo. Depending on the amount of coverage you obtain, it might only cover for personal possessions or it could also go further by covering various fixed appliances inside the condo unit. This coverage can also provide liability protection, as well as coverage for the loss of use of the condo dwelling.
Condo insurance is designed for those who own and, importantly, also live in their own condo unit. If you rent out your owned dwelling, then you would likely need to look into an alternative form of insurance coverage, such as landlord insurance.
Condo insurance functions similarly to other kinds of property insurance. Should your condo unit be damaged, you are then expected to contact your insurer to begin the claims process. An insurance adjuster will normally then pay a visit to look over the damage to ensure that it falls under the coverage and to determine what level of financial liability the insurer will take on. They will then either provide you a check or directly pay for repairs, excluding your deductible. If the unit is no longer habitable, your insurer might also compensate you for the expense of lodging until you can return to your condo home.
There are two kinds of condo insurance. Which one you need will be dictated by the type of insurance held by the HOA or building owner. Should the HOA have ‘bare walls’ coverage, then nothing inside the unit, such as interior walls, floors and fixtures, will be covered. Tn this case, you would be well-served in acquiring a rider or additional coverage to protect those things. If the HOA has ‘all-in’ coverage, then you need only buy a policy that insures your personal possessions.
Additional options include personal liability and lodging coverage if the condo is rendered uninhabitable. The main plus of buying good condo insurance is the peace of mind inherent in knowing that your unit and the possessions within are covered against loss from such events as fire or weather, or even from theft or vandalism.