When you own a condominium, you don’t own the entire building or the property your condo sits on. Therefore, your condo association will have its own master policy for insuring the building and paying for any accidents and damage that occurs on the property outside and the common areas.
This master policy, however, rarely pays for any repairs needed inside your unit if a disaster should happen. The condo association is not liable for replacing any of your belongings if they’re stolen or damaged or any liability costs if you have a guest get injured in your unit; you are. This is why you need to get personal condominium insurance to ensure you’re fully protected.
How Much Condo Insurance Do You Need?
Condo insurance only covers your condo’s interior. Although coverage varies and there are different situations, it generally covers:
- Appliances and interior walls
- Personal property
- Liability claims if a guest gets injured in your unit
So, you’ll be covered if your guest trips and falls, and bangs their head on a table if they decide to file a lawsuit against you. If you’re found liable, your condominium insurance will pay for their legal fees and medical bills.
Before you purchase your condo insurance, it’s important you go over the master policy through the condominium association. They can set up their policy in a few ways:
- All in and all inclusive. This covers the exterior and interior surfaces of your unit, including installations, fixtures, and additions. You’re still responsible for your own personal belongings and property.
- Special entity. This covers almost the entire condo structure including any fixtures in your unit. It doesn’t include unit additions or structural improvements. You are responsible for your own personal property.
- Bare walls in and wall studs in. Only the bare structure is covered here. You’ll have to insure the interior contents of your condo, including kitchen and bathroom fixtures, countertops and your personal property.
Basically, if your condo association has only the third policy type “bare walls-in”, you’re required to buy the most insurance for your unit. If they have the first policy, they’ll be covering pretty much everything except your personal property. Read over your condo association’s master policy thoroughly before you choose your condo insurance.
If there’s a covered loss like a fire or burglary, you’ll have to file a claim to your insurance company and/or the condo associations depending on certain factors. For instance, if your condo was burglarized and your personal belongings were stolen, you’d file with your insurance company. But, if that burglar broke into your condo, destroying an external doorway, your claim may involve both insurance companies.
If you’re unclear about how much condo insurance coverage you need, give us a call here at BOLT Insurance Agency. We can not only help you choose the right condominium insurance for your needs, but also advocate for you and help you with the claims process. To compare condo insurance quotes, complete our simple online insurance comparison quote form.