Condo owners are required to purchase condo insurance as part of the homeowner’s association guidelines. The policies provide adequate coverage for the condo and all spaces around the condo. A master policy provides coverage for exterior structural damage and any damage that relates to shared spaces, such as clubhouses and swimming pools. Condo owners who aren’t sure what to expect can read about the 5 things covered by condo insurance.
1. Residential Property Coverage
Condo insurance covers the residential property including inside the condo and outside of it. What is called the bare walls policy covers the structure itself if it is damaged due to a covered event. This means the policy provides payments for repairing the structure if a fire, natural disaster, criminal vandalism, or a severe water leak occurs. A claims adjuster is sent to the property to complete an inspection and record all damage found in and around the property. Their assessment determines how much the condo owner receives once the claim is approved by the insurer. Condos can learn more about condo coverage from garrity-insurance.com now.
2. Personal Property Inside the Condo
Coverage for personal property inside the condo helps the owner replace items, such as their clothing, furniture, electronics, and appliances, after a covered event happens. The true replacement value is available for certain items under the policy. This means the funds pay for the exact same model of appliance or electronics the owner lost due to the fire or natural disaster. If the same model isn’t available, the insurance provides enough money to buy the next release that is available to consumers.
A claims adjuster provides a valuation for all items lost, and the claim is processed as quickly as possible. Condo owners might also have a rider for high-value items, such as artwork, antiques, or jewelry. A rider requires an appraised value for each item, and if the items are lost, stolen, or damaged, the insurance provides the full appraised value for the items. Riders are often added to the policies as supplemental insurance and offer better protection for hard to replace items.
3. Personal Liability Coverage
Personal liability coverage protects the condo owner against lawsuits and legal claims for personal injuries. If a visitor or service provider falls and sustains injuries, the condo might be liable if they were aware of the hazard and failed to correct it and prevent an accident.
4. A Loss of Use
A loss of use means the property is so damaged that the property owner must vacate the property. In serious natural disasters, condos are more likely to become destroyed. The total loss of the property is covered under the condo insurance, and the owner gets the full market price for their condo if it cannot be repaired. Typically, the policies offer a choice between the market value and the true replacement value. The market value is the price at which similar properties have sold in recent months. The true replacement value is the cost of rebuilding the condo in the same area and following the original floor plan of the property.
5. Loss Assessment for Condo Owners
The loss assessment coverage offers the condo owner a monetary portion of any losses sustained by the condo association. This could include the loss of community-based amenities or common areas used by all condo owners.
Condo owners purchase condo insurance to protect their investment and prevent a financial loss. The insurance protects the property itself and covers the cost of repairs and restoration efforts. All items inside the property are covered under the policy and replaced if they are damaged, lost, or stolen. Reviewing policies helps condo owners find the best policy for their property.