Condominium insurance has some notable and important differences from normal homeowners’ insurance, just like a condo unit is different from a single-family home. The condo association or HOA will certainly have some insurance that protects its members. However, it is important to remember that the extent of coverage on an HOA policy is limited and one should keep that in mind when searching for the added protection of condo insurance. With HOA coverage, protection ordinarily stops at the exterior walls. The condo owner is usually responsible for any interior walls, fixtures, appliances, cabinetry, and general personal property. The HOA basically protects the association from liability for accident or injury in common areas but does little to protect the individual condo owners.
Condominium insurance covers damages to the condo owner’s personal property as well as providing protection from losses due to wind, fire, theft, water damage, etc. Also, this kind of insurance can cover other property for which you are responsible in your condo association agreement, like a garage for example. It is important to note that these policies don’t generally cover flood and earthquakes.
Condominium insurance purchasing is really quite simple. One chooses the coverage based on the kinds of events that are likely to occur. Some kinds of coverage will likely be more expensive than a basic policy so ask an insurance professional for help in determining the plan that best meets one’s needs and is within budget.
If some unexpected event causes damage and is covered by the policy, one contacts their agent. The agent will inform you as to what documentation will be needed and then one can begin with making whatever repairs are necessary os that they can get on with life.
There are several different types of condominium coverage available. Most will cover damage or replacement for personal property that is not under the protection of the HOA insurance. Some policies have coverage for accidental bodily injury and other personal liability issues. Others will cover a portion of the larger bills for damage or liability should the amounts be split between the members of the HOA.
The fact is most condo owners are not in a position to come with the money to pay out-of-pocket costs for weather damage, personal liability, and other costly events. Condominium insurance helps the condo owner to keep his or her property and family protected from the threat of financial crisis.