The Hidden Condo Insurance Mistake That Could Cost You Thousands

You may think that you if own a condo, as your Association has insurance, you don’t need any. Their insurance won’t however, cover the things that could most affect you. The condo association insurance will likely only cover the exterior structure of the building and the common areas. Their coverage will vary, but normally stop half way through your walls and floors. From there on in, will be your responsibility. The contents will be your responsibility too whether fixed or moveable, and if there is damage by fire, theft or vandalism for example, you would have to fork out yourself. Worse still, if someone has an accident while on your property, you could be held liable for their injuries and medical bills, which may well be substantial.

Insurance policies

It’s therefore worth shopping around for the best value policies with the most suitable coverage. The basic coverage will normally be for damage by fire, wind and hail, as well as fixed and moveable contents. Content inventories can be very useful should a claim become necessary.

Exclusions

What is covered can be as important as what is not, and you should clarify this with your insurers. For example, wear and tear is not normally covered and flood and earthquake damage will often only be covered by separate policy. This also applies to the costs of alternative accommodation if you need to move out. Cover can include or exclude the depreciation value of items and there is usually an initial amount that is deducted from any payment.

Assessing cover

Your insurer will also need to inspect your home before granting the policy, to see that the contents cover is broadly reasonable and to check for any major risks or security issues such as faulty window locks. In some cases they may require that enhanced security measures are put in place.