What Is Condo Insurance?
It’s an insurance product that protects condo owners from unforeseen calamities. The policy offers financial compensation during events when the property becomes damaged, through no fault of the property owner. The coverage often covers property damaged inside of the condo unit, as well as property that was stolen during acts of theft.
Who Is This For?
The coverage provides for unit owners who need coverage that extends beyond their condo association’s master policy. A condo master policy is a “bare walls” policy, which covers the building housing the units, the elevators, the roof, and the bare walls of each unit. Or, the master policy might be a “single entity” master policy, which insures the building, the primary fixtures, cabinets, applicable carpeting, and appliances. Condo unit owners might be required to purchase condo insurance coverage property amenities, such as garages, pools, etc.
How Does It Work?
Insurance coverage policies vary, depending on the unit owner’s total possession value, along with the unit owner’s stated obligations for coverage. The unit owner might also need to purchase “floaters”, which provide a pre-determined amount of financial compensation to the unit owner, should valuables such as jewelry become stolen, or damaged.
Different Types Of Coverage
There are various types of coverage for the unit owner’s needs. Building property coverage provides for the unit, as well as additions, and alterations. Personal property coverage provides for the unit owner’s personal property, such as clothing and furniture. Loss of use coverage provides financial compensation to the unit owner, if their unit is damage due to explosions, fires, and “Acts of God”, such as floods, hurricanes, and tornadoes.
This type of compensation provides the policy holder cash, so that they can obtain a temporary place to live. Also, if the unit owner rents their own out to others, they’ll need to purchase a absentee ownership policy.
Major Benefits Of The Product
Provides coverage for the owner’s unit, as well as the belongings inside of the unit. Additional insurance coverage is often prescribed by the unit owner’s condo association.