Is your condo unit insured properly?

March 14, 2007 No Comments

Just buy a new condo? If so, the building you live in most likely has an insurance policy to cover general liability, common areas and the exterior of the building.

But what about your unit and all of your personal property? Many new condo owners are surprised when they discover that their unit is not insured by the master policy.

Condo associations have insurance coverage for the building

If you have recently purchased a new condo, you most likely entered into a condominium association. This association takes care of the building as a whole, including the exterior, common areas, roof, and general maintenance. Somewhere in all that condo paperwork, you’ve seen an insurance policy for the building. This covers general liability, and sudden and accidental loss suffered by the property.

This coverage doesn’t always cover your unit, and never covers your property

The building policy covers the building, but not always your unit. Good policies cover the entire building, including your unit. This is called an “all-in” policy, and it provides the best coverage for your investment.

An “all-in” policy would cover your unit, also known as “dwelling”. This covers your ceiling, walls, floors and interior construction. In case of a loss, you would need to cover the cost to replace these items.

Condo unit insurance will provide coverage for your personal property and liability

As a unit owner, you need a policy to cover “studs in,” referring to your unit’s walls, carpets, furniture, fixtures and personal property such as  flat-screen TV’s and clothing. These are made specifically for condo unit owners, and are called HO-6 policies.

A unit owner’s condo policy also provides liability coverage in case damage to the building or other units is caused by you, like an overrun bathtub leaking to the unit below.  HO-6 policies are very cost effective because they provide a lot of coverage for a reasonable premium.

Click here to request a quote, it only takes a few minutes.

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