Condo Insurance with Elephant
If you own a condominium, typically two insurance policies are required for complete coverage. Your homeowners’ association (HOA) or co-op board is usually responsible for the master policy. This master policy insures the building itself and common areas of your condo, including the roof and walkways. Your personal property (what’s inside your condo) is covered by the second policy, your condo insurance.
It’s important to know which parts of your unit are covered by the master policy and which parts are your responsibility. Typically, the condo owner is responsible for insuring anything inside the unit, including fixtures, walls, and flooring. Some master policies cover the standard unit, but any upgrades are the unit owner’s responsibility. Check with your HOA or co-op board to make sure you’re fully covered.
Condo policies are typical made of four components – personal property coverage, loss of use coverage, and personal liability coverage.
Personal Property Coverage
Personal property coverage on your condo policy protects your personal belongings from loss or damage due to covered perils such as fire, theft, smoke, and vandalism. to events like fire, windstorm, burglary, smoke, hail, theft, or vandalism. If something were to happen, the cost of buying new computers, TVs, furniture, and clothing adds up quickly.
Depending on the type of policy you purchase and what’s covered, if your property is damaged, your condo insurance policy will reimburse you for either the actual cash value or the replacement cost value of your lost property. Taking a quick home inventory will give you a good idea of how much coverage you need.
Loss Assessment Coverage
Most basic condo insurance policies also offer loss assessment coverage. If your condo building is damaged by something that isn’t covered by the master policy, the HOA may make an assessment and you may have to pay for a portion of the damage. Your loss assessment coverage can help pay your share.
Loss of Use Coverage
A typical condo insurance policy will provide loss of use coverage. This will help cover the cost of temporary living expenses if you’re forced to relocate while your home is being repaired due to a covered loss.
Personal Liability Coverage
In addition to protecting your personal property, a basic condo insurance policy also provides liability coverage for you if someone gets hurt in your home. Liability insurance can help cover the cost of medical bills and court costs if you’re sued by a third party because of the accident.