Frequently, condominium owners believe that once their mortgage is paid off they no longer need coverage for their unit. This confusion stems from a misunderstanding of what the condominium association’s master insurance policy covers. For the sake of argument, assume that the master condo association policy covers all units so if there is a fire your unit will be rebuilt. This is an all inclusive policy and only covers perils such as fires in the entire building. Individual unit owners are not covered for loss of personal property nor are they covered for personal liability. So, discontinuing coverage when your mortgage is paid still leaves you liable to replace your personal property on your own and assume financial risk should someone be injured while inside your unit.
What Condo Insurance Covers
Condominium insurance policies cover three things:
- Personal Liability
- Personal Property Replacement
- Replacement Dwelling
Personal liability insurance protects you financially if your actions cause harm to someone else. Imagine you have a party in your condo unit. A friend has brought a date to your party. During the party the date trips on a chair leg and tumbles down the stairs. Because of the injury the date incurs medical bills and also loses time from work. You receive a letter from an attorney demanding that you pay $100 thousand dollars to cover medical costs incurred and anticipated as well as lost wages. If your condo insurance includes a personal liability limit of $100 thousand you are fully protected. Without the policy you will have to hire an attorney to defend you or negotiate a settlement that you will pay from your own pocket.
Personal property coverage protects you in case of fire or theft. It pays you to replace items such as appliances, clothing, furniture and art and jewelry within certain limits. Be careful when purchasing this insurance, replacement cost is different than cash value. Replacement cost allows you to buy a new dryer if yours was destroyed in a fire, cash value is the depreciated value of your dryer and will not be enough to replace it – you always want replacement value to keep you well covered.
Condo Dwelling Insurance
If your condominium association does not provide unit coverage then you need dwelling insurance. Say you have a grease fire in your kitchen and the kitchen cabinets are destroyed. Fire is a covered peril and this insurance will pay to have new cabinets installed and even to repaint your kitchen.
All three perils can be combined into a single policy. The coverage is relatively inexpensive and the peace of mind tor being protected cannot be valued.
Everyone is busy decorating their Christmas tree with bells, toys, lights, flowers and many more. Be it on the streets, stores, shops, malls and even at home you will find a Christmas tree. Unfortunately, there is always some risk involved with decorating the tree, be it artificial or real, short or 10 feet tall. Below are some safety precautions which on following can prevent the catastrophes.
As per the survey made by National Fire Protection Association, Christmas tree fire does not occur frequently but yes when occurs it causes serious injuries, home damage and even death. A small spark created by lights or nearby fire place is enough to ignite the fire. Hence, make sure to thoroughly check for faulty wiring or any frays. Place your Christmas tree far from fireplace or heat sources. A report also says a watered tree is less likely to catch the fire than the dry ones.
If you have children or pets at home then you will have to be more cautious. The small lights or ornaments used to decorate the Christmas tree looks more attractive to kids or pets. They tend to pull them out of curiosity which can cause a choking hazard. Ensure to keep such items far away from kids or pets, out of arms reach.
Everyone would love to decorate the Christmas tree with more of lights and crowd it with possible electrical outlets which easily piles up to cause an electrical shock. The tree alone would not cause any harm, so make sure to check if all the lights are in good working condition. Also, do not load the outlets, instead use power strips to handle all the plugs. With all these in mind, now you are all ready to decorate your Christmas tree. Merry Christmas!
Due to the specific division of the ownership of such properties, condos have different requirements from regular homes when it comes to insurance. When you’re comparing quotes for condo insurance coverage, you’ll need to take different aspects into account for your condo insurance policy than you would for a conventional home.
Condo Insurance Coverage Basics
In the United States, condos are usually partially insured with a condo association’s master policy. This master policy provides coverage for the common areas inside your building, such as the lobby, hallways, stairs, and any other common areas in your building. In addition, the master policy also insures all outside common areas and the exterior of the building. As the owner of your part of the property, it’s your responsibility to get condo insurance coverage for your unit.
Finding the Best Condo Insurance Coverage
Before you request condo insurance coverage quotes, review your condo association’s master policy carefully and take note of what is already insured. This way, when you request condo insurance coverage quotes, you don’t pay twice for the same thing.
AgentInsure, one of the nation’s leading insurance comparison companies, can help you find the best condo insurance coverage policies for your situation. After receiving your free condo insurance coverage quotes, you can review each one and see which provides the best coverage for your unit, as well as your possessions, so you’re completely covered in the event of damages or theft. AgentInsure can help in all aspects of assessing your condo insurance coverage needs, how much your monthly premium and deductible should be, and what types of damages are covered.
When you buy a condo, you automatically sign the condo association’s master policy that is responsible for all common areas, as well as the outside of the building. However, the inside of your condo is your responsibility, and you’ll need to shop around and compare home insurance to find the policy that is right for you.
Before you request any homeowners quotes, make sure you’re clear on what’s covered in the condo association’s master policy, so don’t pay for the same things on two different policies. You can compare home insurance by requesting free quotes from insurance comparison companies, like AgentInsure, one of the nation’s leaders in this market.
Because you can request free quotes online, you have all the time in the world to fill out your information and review it before sending in your request. Once you receive the quotes, you can compare home insurance quotes at your leisure. Rates can vary significantly, but it’s important to carefully compare home insurance quotes and choose one that best reflects your needs—not simply the lowest premium. If you opt for a low premium when you compare home insurance, remember that your deductible will also be higher, and you will have to come up with that cash in the event of a claim.
Once you’ve chosen a policy, remember to periodically compare home insurance quotes to see if there’s a better deal out there.
Condo owners have benefits that aren’t shared by the average homeowner, in particular freedom from having to care for landscaping and being able to benefit from security services provided by their condominium association. However many condo dwellers question whether or not they should pay extra for private condo insurance coverage. Many are under the false assumption that insurance coverage is provided by the condo association, but this isn’t always the case. To find out whether or not you’re a candidate for a supplemental condo insurance policy, read on.
Misconceptions About your Master Insurance Policy
If you live in a condo, you probably pay monthly dues that go towards what’s called a “master insurance policy.” But don’t mistake this for an insurance policy that’ll cover you in the event of damage to your personal property. Your condo’s master insurance policy only goes so far as to cover the following.
- Damage to common property that all residents in your association use. This means that if the pool clubhouse is damaged in a fire, the master insurance policy will pay for it. However you won’t be covered if you burn your kitchen down trying out a new recipe.
- Personal injuries that occur in common areas. If someone slips and hurts themselves in the parking lot, the association will pay for this. But if you or a guest slips and breaks a bone while trying to put out the fire in your kitchen, you’ll be responsible for covering the medical damages.
- Burglary and vandalism to common areas. As with everything else that’s covered by the condo’s master insurance policy, only common property items that are stolen or vandalized are covered. If someone breaks into your condo and takes you for everything you’re worth, this isn’t covered.
Supplemental condo insurance coverage isn’t required, but strongly recommended if you want to safeguard your personal property and ensure adequate protection against bodily injury.