What Should You Know About Condo Insurance?

Much has been said about homeowner’s insurance being an integral part of purchasing a home. However, for the estimated 22.5% of Americans* who live in a condo or co-op, condo insurance plays an important role in maintaining their residence.

How does it work?

Condo insurance complements the condo association’s master insurance policy. Depending on your policy, it covers what the association’s policy won’t, including the owner’s personal belongings and liability costs. It can also cover the portion of the master deductible, if the unit owner is assessed for damage to common areas, such as roofs or pools.

  1. Coverage details:
    • Personal Belongings: Furniture, electronics, and other items inside the unit are typically covered. If someone steals a TV or a burst pipe damages the dining room set, the condo policy can typically reimburse you.
    • Liability Coverage: Depending on your policy, if the owner’s dog bites someone or a guest gets injured in your home, condo insurance provides liability coverage if you are at fault. (Note: Some insurers won’t cover certain dog breeds).
  2. Is condo insurance required?
    • Just like homeowner’s insurance, mortgage lenders generally require condo insurance.
    • Having this coverage protects the homeowner and the lender’s financial interest during the loan term.
    • Even if the owner has paid off the mortgage or owns the property outright, having condo insurance is still advisable.
  3. The cost of condo insurance and how to buy it:
    • The cost of condo insurance varies based on factors like coverage limits, location, and deductible.
    • To receive a quote for condo insurance, consider working with an experienced insurance agent who can guide you through potential coverage gaps, including the cost to rebuild the interior unit.

Remember, the condo association’s master policy covers common areas and structures, but personal condo insurance ensures belongings and provides liability protection. When condo owners purchase a policy, it protects the interior, their belongings, and their assets against certain lawsuits.

If you’re looking to purchase a condo, the team at Anywhere Insurance Agency can guide you through the process of finding a suitable condo insurance policy. Click here for an appointment to start the process of getting a quote.

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. The material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. Not for reproduction.

*Source: https://foundation.caionline.org/publications/factbook/statistical-review/