Whether you have just purchased a condo or you have been in possession of a condo for years, all owners share one commonality - the need for insurance. Even if you use the condo for a couple of weeks out of the year, protecting this piece of property is extremely necessary. Condominiums offer both simplicity and elegance to owners who use them for a variety of reasons. Some are frequently rented, while others are used as full-time living establishments. Whatever the situation may be, understanding these quick tips about condo insurance will ensure that you are completely covered.
If you own a condo, you are aware that your entire complex is more than likely controlled by an association of owners that jointly represent the ownership of the entire property. It is best to get to know this association as soon as possible. These people will give you a lot of friendly pointers and help you get settled in the community. The association members may be able to point you in the right direction as far as local restaurants, markets and other destinations.
Condo complexes have the reputation for being luxurious and beautiful. Attributing to these beautiful sights and sounds are the commonly shared areas for recreation and leisure. These shared areas such as a swimming pools, tennis courts and grilling areas are commonly insured by the association. Condo associations will have what is called a "Master Policy" with deductibles that are paid as a group by all of the owners. If your condo association's buildings were destroyed or damaged by wind, the community's condo association would make a claim against the insurance master policy. The deductible amount attached to your condo community's master insurance policy is also spread among all other owners. This master policy is both convenient and usually cost effective.
A key element in the search for condo insurance is understanding the "by laws" - the by laws will explicitly tell owners what they are responsible for as a Unit Owner. Understanding these laws can save you both time and money down the road. Make sure you fully understand the master policy and by laws to see what is covered and what is not. Once you comprehend the existing coverage on your condo, you can then select a policy based on the current situation.
Because your condo is covered by your community's master insurance policy for certain aspects, what you need to insure is different. Condo homeowners insurance typically covers loss & liability involving possessions and people within condo units while insurance master policies cover other issues. Condo insurance master policies also come in two varieties, "bare walls-in" and "all-in" - the following will help you to understand how to differentiate between the policies.
"Bare Walls-In" - All real property in your condo from the exterior and in is covered. With that said, bare walls-in policies do not cover installations or other items similar. So, your flooring and new kitchen won't be protected.
"All-In" - This plan offers more coverage for the entire unit. The installations and other items that bare walls-in did not cover are protected under this policy.
Insurance providers are always offering discounts for auto and other policies. Luckily, the same goes for condo insurance! These price deductions can occur for various reasons such as anti-theft alarms or bundling your policies. The most proactive way to ensure your condo is protected is to talk to your insurance agent. With the necessary amount of research and understanding, you will be well on your way to insuring your condo.