If you have recently made arrangements to purchase a condo, you will need to think about condo insurance. This is not only to protect your own investment, but to help meet your responsibilities as a unit holder within the condo corporation.
One thing to look at is what is affecting the price of your insurance policy. Have you had recent claims on your last policy? This can affect your price and cause it to go up. Unfortunately, it is not something that you can change, but by shopping around, you may be able to get several different quotes for comparison. You also need to look at what is being covered in the insurance policy. There may be items which are duplicated under the condominium corporation’s policy.
Generally, while you will need to cover everything inside your condo unit, including structural upgrades, you will not need to have elevators, roofing or other items included in your policy. Upgrades may include brushed concrete flooring, improved cabinetry or appliances, and better windows or floor tiling. If you have luxury items, you may need a rider. This can make sure they are insured but it can add to the cost.
Because you have responsibilities to the condominium complex, you will need to make sure that you are able to meet those requirements through your insurance policy. Specific condo insurance policies reflect that in their wording, but you should make sure that the insurance policy you choose will mesh well with your unit holder responsibilities.
One aspect to condo insurance that differs from homeowners insurance is the distance from the residence that injury claims are covered. In homes, this should include the property, but in condo insurance this is often a much shorter distance. Condo insurance will cover personal injury that occurs within one hundred and fifty feet of the door. As you can see, this is one area where there is a significant difference between condo insurance and homeowners insurance.
Many insurance companies will drop their rates if you are also insuring a vehicle or other items from them. A bundled rate can be good, but don’t worry if you are not insuring anything else. You may still be able to get a deal if you go to the company which is also insuring the condo corporation. They may be able to give you a better group rate than a stand-alone policy through another company.
There are so many differences between condo insurance and homeowners insurance that most important questions should be to your insurance company or agent. How much experience has their insurance company had covering condos? Are they simply giving you a modified homeowner’s policy, or are you getting one specifically designed to cover the unique living situation of a condo? The answer may tell you you need to look elsewhere for coverage.
Condo insurance does not need to be intimidating or break the bank. By shopping around, comparing rates, and exploring your options, you should be able to ensure you are well taken care of.
Author: Ken Henry has some great suggestions on finding the solutions to your insurance questions. Get homeowners insurance advice and quotes from 5 top companies, plus save big money on auto and homeowners insurance
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