If you have made the decision to purchase a condo as your primary home or as a real estate investment, you may need to purchase condo insurance. This is a type of real estate or property insurance that is specific to condo units. Condos are unique because you own a portion of a building only, and you typically do not own the land that the building is on. When you own a condo, you may be required to purchase property insurance by the condo owners association as well as by your own mortgage company, and both of these entities may have specific minimum coverage requirements in place that you must meet.
There may be two different components to your coverage. First, your policy may include coverage to replace the contents inside the unit. In the event of fire, theft, flooding or other issues, your personal items may be damaged, stolen or destroyed, and the personal property component of your coverage may pay to replace these items. This may include everything from your furnishings and electronics to your clothing and appliances.
In addition, there may be a component to the coverage that includes the interior structure of the property. Generally, the condo association will be responsible for any damage to the outside of the structure, such as to the roof or siding. However, if damage is done to the drywall, electrical components, flooring or other interior building components, these may be your financial responsibility. The coverage may cover specific events, and these events may vary from policy to policy. However, some policies will cover your losses related to fires, natural weather events and vandalism or floods.
It is important to note that you typically will be required to pay a deductible when you file a claim on your policy. You may be able to select the deductible amount when you purchase your policy, and this will help you to control your expenses related to using your insurance and filing a claim. If you own a condo or you are making a purchase, you should first learn more about the minimum requirements you must meet before buying a policy.
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