What are the most important things for buying a condo insurance? What are things that need to be included?
October 6, 2009 by
Filed under condo insurance
What if something happens to the condo due to the fire caused by something inside the apartment? Who will cover that? Condo insurance or association master insurance?
Here is what you should ask for when buying condo insurance.
1. Special Perils for the building portion you are responsible for.
2. Loss Assessment Coverage
3. Unit owners Coverage C special Perils (for your contents)
Also, make sure you have water backup if you are on the ground floor and replacement cost for your contents.
Too answer your last questions first, who pays depends upon your condo documents and the laws of the state where you live.
You definitely need a separate policy to cover the interior parts of your unit, your personal property, and liability coverage.
Make sure you determine how much of the interior you are responsible to insure. This section can be called Building Coverage, additions and alterations, or special coverage. In most instances you are responsible to cover cabinets, fixtures, the heating and AC system (insurance doesn’t cover maintenance, but if it were damaged in a fire, for example) – all of the interior parts of the unit. On some states you insure from the paint in, sometimes from the drywall in, sometimes you’d even be responsible to rebuild staircases. State law and condo documents determine who is responsible to insure what.
You also need Personal Property, also known as Contents coveragemto cover all of your clothing, dishes, electronics, etc.
You also need Personal Liability to cover if, for example, a workman got hurt in your home and claims against you.
Loss Assessment pays if all unitowners are equally assessed for something that would be covered under your policy. For example, let’s say there is a fire and the building wasn’t’ carrying enough coverage to cover the damage. If the association assesses you $500 you can collect under the Loss Assessment section of your policy. On the other hand, if you are assessed for painting the buildings, or paving the roads or other maintenance issues there is no coverage.
If you are on the first floor you also want to ask for Backup of Sewers and drains coverage, but not every company offers it. Also check into Flood insurance, which is a separate policy but definitely worth looking into if you are on the first floor.
Get a copy of your condo documents and go see your insurance agent. They can help you determine how much coverage you need.
Best of luck!
Home insurance is actually very flexible. I’m not familiar with all the fine print of my policy, but my home insurance agent is always helpful. Try contacting your agent or a homeowners agent in your area. http://www.easyhomeinsuranceguide.com They will be able to assist you.
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