Information on Condo Insurance
Good Condo insurance is just as important for homeowners but does have some important differences. After all, condo units themselves are different from single-family homes. The condo association or HOA will normally carry insurance that protects its members, but it can be very limited. It is important to learn the extent of coverage of the HOA policy when looking for the additional protection of condo insurance coverage. With HOA coverage, protection usually ends beyond the exterior walls of the unit. This means that the condo owner is responsible for any interior walls, cabinets, fixtures and appliances, personal property and so on. The HOA normally only protects the association from liability for accident or injury but does do not much in protecting the individual owners.
What is It?
Condominium owner insurance is designed to specifically protect the condo owner from possible losses not covered under the HOA insurance. Owned property is what is covered in this type of policy. In situations in which the condo owner (but not all members of the HOA) is found liable for any damages, this is the policy that can help. For instance, if a fire starts in your unit but also affects any neighboring unit, this insurance pays.
How it Works
Condo insurance protects the condo owner from losses resulting from heavy winds, fire, theft, water damage and other potential events. Should one face a loss, one will likely need to file a claim with both the condo insurance company and the HOA’s company as well, as some claims will likely overlap. Keep in mind that these plans don’t usually cover flood and earthquake and one would need to purchase separate policy coveage for these protections.
Types of Coverage
There are two kinds of coverage that are normally available to the HOA. First up is the “All-in HOA,” which protects above and beyond the minimum HOA plan with additional coverage for the interior, such as the ceilings, floors, perimeter walls within the unit and fixtures and appliances. An individual owner would likely need little additional coverage in this case. Secondly there is the “Bare walls-in HOA” coverage that protects the condo from the exterior frame to the interior but won’t cover fixtures or other installs of any kind within the condo unit. In this instance one cannot expect the main policy to cover things like flooring, fixtures, counter-tops and so on. Here one can really benefit from purchasing his or her own condo coverage.
The benefits of condo insurance can be huge. One receives protection from losses due to damage or theft of any personal property. You will also enjoy certain other protections from loss or liability with this coverage.