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Condo Insurance

Condo Insurance – Condo Homeowner Insurance

Owning a Condo is a great alternative to owning a stand-a-lone house when you want to minimize the maintenance that a traditional site build house requires.  Condos are usually a improvement over living in an apartment too where the adjacent renter-occupants might change more frequently,  When you own a Condo insurance is important to protect your financial interests in the unit improvements that are not considered a part of the values the Condo Association is obligated to insure for the collection of owners in the complex.  Condo insurance is similar to the coverage that is placed on traditional homes and can include most or all of the coverage parts in a homeowner insurance policy.

A condo insurance policy covers where the policy maintained by the Condo Association leaves off.  Commonly owned property and improvements are the only things that the Association is buying insurance for and it isn’t likely that improvements within your unit are covered.  No Condo Association is insuring the personal property you bring into the premises and in this regard you need to purchase condo insurance to protect your own property.  The improvements and betterments inside the unit should be insured as well so that when the property is reconstructed after a loss you will not have to make an additional financial investment to finish the interior of your unit.  Common improvements that you are required to insure include, property that is not covered by the Condo Association, includes cabinetry, carpet, plumbing fixtures and other improvements that are beyond the standard fit and finish first build by the Condo Association.

The Condo Association Master Policy generally provides coverage in the following ways:

The most common method of insuring for a Condo Association Master Agreement is to insure the basic building structure which includes the walls, floors, roof, and common entrances and exits to the property. This makes it the responsibility of the individual unit owner to cover the cabinets, wall covering, carpeting, appliances, and anything extra that is added or improved upon beyond the standard fit and finish of the construction of the property,

The second most frequent method of buying insurance by the Condo Association Master Agreement (The Association) is to include both the basic building structure and the property within the unit but not the unit owner’s personal property.

The least common method used by Condo Associations to buy insurance under the Master Agreement is to buy insurance for the basic building structure, the items within the individual unit, which includes all fixtures and improvements for the unit owner. You should verify the requirement for insurance with the Condo Association to know exactly where you are responsible to buy insurance, and where the association obligation ends.

Understanding The Condo Insurance Policy starts with understanding the coverage you have chosen.  These choices are specified on your declaration page.  While the coverage may be reported differently from company to company, your coverage is always listed on the declaration and, if it isn’t listed you probably don’t have the coverage.  Some coverage may appear on your policy as endorsements rather than in the declaration page but you should be able to find all the coverage you have bought listed on the declaration page. Here are the common coverage parts for a homeowner property policy form:

Section I – Property Coverage

  • Coverage A – Condo Dwelling Interior Improvements Amount
  • Coverage B – Additional Structures – 10% of coverage “A” (for garages)
  • Coverage C – Contents and Personal Property – Minimum 50% of coverage “A”
  • Coverage D – Additional Living Expense – Minimum of 20% of coverage “A”

Section II – Liability and Medical Payments

  • Coverage E – Personal Liability Coverage – $100,000 is minimum with most companies
  • Coverage F – Premises Medical Payment – $1,000 is minimum with most companies

Here is a link to a typical declaration page that you might received for your home insurance:  Home Insurance Dec Page Infographic

Property Insurance Topics