Whether you are buying a condo or you are already a condo owner, you may be looking for a new condo insurance policy. Many residential lenders require condo owners to maintain coverage as long as they have an outstanding mortgage balance. In addition to the need to meet this requirement, some will purchase coverage because of the benefits it can provide to them.
Condo coverage is a type of property coverage specifically designed for condo owners. Coverage may provide financial benefits to the insured in the event damage is done to the property itself. For example, the property may be damaged due to a flood, a fire or another type of event. Optional coverage is available that covers the owner’s personal contents in the condo. For example, some events may result in the loss of some or all furniture, clothing and more, such as a theft, a fire or something else. Personal contents coverage may provide the insured with a financial reimbursement so that these items can be replaced.
Liability coverage is also common with a condo policy. Anytime someone visits the condo, they may be injured and may hold the property owner liable. This may be for a slipping accident, a dog bite or something else. Liability coverage may pay for the other person’s medical expenses, lost income, legal fees and more, and this can help you to save a small fortune on related expenses.
You will typically pay for the premium on a monthly basis, but annual payments are also an option. If your lender requires escrows, the insurance premium may be collected through your monthly condo mortgage payment. When you file a claim on your condo policy, you may be responsible for paying the deductible, and the deductible amount may be adjusted by you when you purchase the policy. Any additional expenses that are covered by the policy may be paid for by the insurance company up to the coverage limits.
If you have a condo, it is beneficial to learn more about condo coverage. Pay attention to the minimum requirements in place, and consider how optional coverage available through different insurance companies may benefit you.