Condominium Insurance: How To Find The Right Insurance For Your Condo

THINK OUTSIDE THE BOX: If you own a condo, there are a few things you need to know to keep yourself from the different risks that come from owning one. Although a condominium association covers different parts of the complex, you’re still required to get separate home insurance.

Having building insurance policy is the best way to protect a condo building. A building insurance policy covers areas such as elevators, the lobby, and the gym. Building insurance only covers these areas and does not include the personal things owned by the condo owner. Also, if you make improvements or cause damage to another unit, this insurance will not provide you with coverage.

After learning this, you now understand why it’s important to get insurance for your condo. Although it’s not something you have to get it provides you with protection from the different risks that come with owning a condo. Just like having home insurance having this type of coverage is required for the protection of your investment.

This insurance covers any expenses that occur as a result of damage that started in your unit. The hardest part is finding the right insurance to fit your needs. Speaking with an experienced insurance agent can help you to find the right insurance for your condo.

Before talking to an agent there are a few basic things you must to know, and we will discuss them now.

All-Risk: with this protection, your building, and its contents are protected from any losses that occur as a result of unexpected events.

Contents Insurance: having this coverage will protect the things you own especially when you’re traveling. Any damages caused by common types of risks up to a specified amount are covered when you have this coverage for your condo.

Personal Liability Insurance: if you injure a person and it was not intentional or if you cause damage to their property this insurance policy that helps to cover the expenses. Whether someone gets injured on your walkway or damage any part of their body and are unable to work for a period the costs are covered when you include this type of insurance for your condo.

Replacement Cost Coverage: this coverage ensures the furniture and other personal belonging of your condo are covered for the amount that it costs to replace them.

Improvements and Betterments Protection: having this coverage means you’ll receive compensation for any improvements you make to your condominium. You must note that this is up to the limit of the replacement value.

Additional Living Expenses Coverage: if there is ever a situation that causes you to leave your home for an insured risk then with this insurance you are covered for any reasonable expense such as hotel and food costs.

Special Assessment: with a special assessment, you’re responsible for any loss of property that surpasses the limit provided by your insurer.

By owning a condo, it means you own the unit and share ownership for the rest of the building. This is according to the master policy. Regarding insurance, you’re responsible for making sure that the common areas of the condo are protected with the right insurance.

Typically, when it comes to building insurance, this is included as a part of your condo fees. If you don’t know what is insured by your association dues, you can find out by taking a look at the condo association’s condo documents. In these documents, you should be able to understand what parts of the building and what parts are not covered by your membership dues.

The Importance of Special Assessment Coverage

When you own a condo, you typically share responsibility with the other condo owners for the condo building. For this reason, special assessment coverage is an important part of your condo insurance. If there’s a special assessment for your condominium building, then this cost is split between the owners of the condominium.

A unit owner can obtain special assessments insurance. This coverage will benefit a unit owner in circumstances where a condominium corporation suffers an insured loss, the insurance proceeds are inadequate to cover the costs, and the corporation levies a special assessment for the difference.

Special assessments can run into the thousands of dollars and be financially overwhelming. Even if you sell your unit, you have to disclose the special assessment. As a unit owner, it’s essential that you protect yourself against insurance-related assessments by having the right personal condo policy.

Conclusion

When you own a condo, you must do everything to ensure you protect your investment. Many condo owners don’t realize they need to have insurance for their condo. While a building insurance policy covers a lot of things, there are still many it doesn’t. For this reason, as a condo owner, you must ensure you have the right protection insurance in place to keep your personal belongings protected and make sure to inquire about obtaining special assessment insurance.

by Gerard Hagan         Best Edmonton Real Estate          April 05, 2017

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