Condominiums

The Condominium policy is one of the most misunderstood homeowner’s policies!

When purchasing a condominium policy, make an inquiry with your condo association about the type of condo policy you need. Regardless of whether or not it is owner occupied or tenant occupied, there are two basic differentiations you must be aware of:

FIRST:
Some Condominium Associations insure the interior build out of your home, in addition to the outside and “common” elements of the property or Association. If this is the case, you will need to insure the contents of your condominium unit, in addition to the General Liability and other optional coverage you should discuss with your Agent.

SECOND:
Many condominium associations ONLY insure the common elements, or everything outside of your unit. In this case, you will need to purchase enough insurance on your Condo policy, to cover both your Contents AND the build out of your condominium’s interior. This would cover everything including drywall, doors, plumbing and electrical fixtures, cabinets, kitchen appliances and flooring.

This second scenario requires much more insurance coverage than the first scenario.

LOSS ASSESSMENT:
The condominium Loss Assessment coverage is vital, regardless of whether you are purchasing an owner occupied condominium policy or a tenant occupied condominium policy.
When your condominium association experiences a loss, they may pass a portion of the loss through to the individual unit owners to pay. Occasionally, these assessments can be very large and difficult to pay if you had not been planning on such a large expenditure. The Loss Assessment Coverage will assist the unit owner in paying this obligation. Without it, the entire loss assessment must be paid from the unit owners own funds.

Ask us about other important optional or suggested coverage for your condominium policy.