What is Condo Insurance?

What is Condo Insurance?

It is estimated that some 5 million American families live in condominiums. Condos can make living easier because much of the maintenance is handled by the community or homeowner association.

While a single-family homeowner owns the property, structure and contents of their home, a condo owner owns the space in which they live and its contents, but is not responsible for exterior maintenance. This distinction creates some important differences between insuring a condo and a single-family home or even an apartment.

A Brief Definition

Condominium insurance is an insurance policy that is taken out by the condo owner to protect his investment in a condo unit.

What It Covers

Generally, condo insurance covers the unit and its movable contents including furniture, electronics, clothing, housewares, bedding and more from covered perils. The condo unit is usually considered from the walls inward. Perils may include fire, theft, vandalism and natural disasters. It also provides liability protection in the event a visitor is injured while on the property under the control of the owner.

What is a Master Policy?

Condo owners are, to some degree, protected by an association’s Master Policy. The coverage on a Master Policy and consequentially on the unit owners’ policy are dictated by the By-Laws of the Association.This coverage generally only covers a condo from the brick or concrete outward along with common areas of the condo community. It may not cover drywall, plumbing, furnishings or anything in the interior of a unit. It also provides no protection from any liability claims made against a condo owner.

Loss Assessment Coverage

Many condo owners may falsely believe they don’t have any worries when it comes to external damage to their condo or if their association is sued by someone sustaining an injury. The problem is, the association may not have sufficient coverage to cover full damage or a liability claim may exceed the association’s limits. In some instances, where hurricanes caused severe damage to condominium communities, individual owners were assessed for the damages not covered by insurance. This can run into the tens of thousands of dollars. Condo Loss Assessment Insurance can provide additional coverage for owners against these additional charges that may be assessed.

Like homeowners’ insurance, condo insurance will likely be required by any bank or mortgage company that has financed a condominium. The homeowners’ association itself will frequently require it to protect the interest of other owners. If you currently live in, or are considering purchasing a condo, contact us for your no-cost, no-obligation condominium insurance quote. Our independent insurance agents will search multiple companies to find the coverage you deserve at a price you can afford. Contact us today.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Five Man-Made Structures in the USA You Should See in Person

It is Difficult Not to Be Impressed When Visiting These Structures

8 Tips to Market Your Small Business on the Cheap

Read eight ideas that can help you get the name of your business in front of more people.

Staying Healthier: A Home Gym in the Space of a Closet

Motivation May Be a Factor But Lack of Space Should Not

Why Now is a Good Time to Compare Car Insurance Rates

The planets just may be aligning for you to get the best insurance rates you’ve qualified for in years. Read why.

Preventing Yourself From Becoming Insurance Poor

Getting the Most Out of Your Insurance Coverage

Name the Movie: 12 Memorable Lines

They are the Movie Quotes That May Live Forever

Staying Productive Working From Home

Working From Home Provides Challenges and Offers Rewards

Life Insurance For All Phases of Life

Why Life Insurance Should be a Part of Your Financial Future

Six Assumptions About Auto Insurance That Could Be Costing You $$$

You Know What They Say About Assumptions, Right?

Features that are Attracting Home Buyers Today

Making These Upgrades May Help You Sell Your Home Faster and For More

Leave a Comment