What Is A Condo Insurance Policy, And Why Do I Need One?
As a condo or co-op owner, it is important that you get an insurance policy that meets your unique needs. Condo associations generally have master policies covering the structure itself and the liability of the association as a whole. However, this does nothing directly for the condo owner. A condo insurance policy is necessary for “improvements and betterments,” a common term that simply means “anything done to make the condo livable from the walls in.”
While it varies slightly based on the wording of the association document and its master policy, you are basically responsible for the entire unit from the sheetrock inwards as a condo owner. That includes things that you’d think of as part of the structure, like interior walls, as well as things that you probably don’t even think about at all, like the kitchen cabinets. When you bought the condo, you paid for two things: 1) a share or partial deed to the building itself and 2) all the things that turn it from an empty shell into a home. Those things need to be insured, as does your liability, with a condo policy.
Why Do I Need Liability Coverage On A Condo Policy?
Liability coverage on a condo policy protects you from two primary risks. The first, of course, is that someone will sue you for a negligent act outside of your home. The second is that you will be jointly liable for something with another unit owner that might not be covered under the master policy.
Perhaps you and a neighbor agree to share upkeep on a potted plant you place between your doors. Little do you know that the lovely poinsettia you just planted in a building full of kids is toxic to children. After an ER trip, a parent sues you. The judgement can force you to sell your home and other assets to pay for it. Liability insurance on a condo policy helps to avoid this sort of situation and keeps your home safe from the risks that could take it away from you.
Who covers what on a condo insurance policy?
When you are designing the right condo insurance policy, the first question is, “Who covers what, and what is the limit?” This question gets even more confusing when reviewing a co-op policy. There is not a standard answer to this question, so let an expert from Effective Coverage review your association by-laws and help determine what type of coverage you need.
A condo policy can cover damage to your furniture, clothing, appliances and other personal items; your personal belongings, whether they’re in your home or elsewhere; common loss assessments made by the condo association for all unit owners; and your personal liability in the event someone is injured or property is damaged. All of these things are necessary to consider. In a fire, you’d be responsible for damage to your unit, damage to neighboring units from fire, smoke, or water, possible medical expenses for other residents, as well as damage to your personal property. Can you write a check that large? If you can, do you want to? Of course not.
Call Effective Coverage today at (800)892-4308 or click above for fast, easy quotes on affordable condo insurance or co-op insurance. You can also click above and get your instant online condo insurance quote that way as well.