Condos are growing in popularity as a housing option for many people. But before you buy into the condo lifestyle, you need condo insurance. What is condo insurance? What does it cover? And why do you need it? Keep reading for answers to these questions.
What Is Condo Insurance?
Condo insurance is designed for condominium owners. The condo association typically purchases this insurance on behalf of all unit owners, and each unit owner is then responsible for their personal property insurance. While the amount of condo insurance coverage you need will depend on different factors such as your location, the size of your condo, and many more, it’s best to purchase enough coverage to protect your belongings and cover any potential repairs or renovations that might be necessary.
What Does Condo Insurance Cover?
Most condo insurance policies cover the following: the dwelling itself, any detached structures on the property, personal belongings, and personal liability.
- The exact coverage will vary and depends on the insurer and the policy, but these are the most common types of coverage.
- The dwelling coverage protects the actual unit you live in and any attached structures like balconies or decks.
- The detached structures coverage protects any standalone structures on the property, like a storage shed or detached garage.
- The personal belongings coverage protects your belongings from damage or theft, whether inside your unit or outside.
- Personal liability coverage protects you from financial burden if you’re sued for causing someone else bodily harm or damaging their property.
Who Needs Condo Insurance Coverage?
Condo insurance coverage is vital for all condo owners. While your HOA may have some insurance coverage, it is typically not enough to protect you financially if something happens to your unit. If you have a mortgage on your condo, your bank or lender will require you to have condo insurance coverage. Even if you don’t have a mortgage, it’s good to have this coverage in case of liabilities or damages.