Posted In:
MENUMENU
Are you looking to upgrade from a rented apartment in a residential building without jumping straight into an expensive house somewhere? A condo might be your best bet. They’re more economical than single-family detached homes, but you still get to own your space.
Of course, it’s an even better move if you get condo insurance with it. It works the same as homeowners’ insurance, protecting your property and everyone and everything within it. However, before we get into what condominium insurance covers, you might wonder what the landlord takes care of.
Below, Insurdinary’s experts cover everything you need to know about insurance for your condo, what the landlord’s policy will cover, and six reasons you’ll want to ensure you have coverage in place when you move into your new condominium.
You may already realize that when you purchase a condo in a building, small or large, a master condo policy is already in effect for you and everyone else in the co-op building. Typically, this policy states that the landlord is responsible for anything from maintenance fees to medical and legal costs for residents and visitors in common areas. For instance, if someone gets hurt in the lobby, hallway, elevator, or any other room in the complex that’s not your condo, you won’t be liable (you do not own the structure itself).
Your landlord will also handle maintenance, repairs, and replacements in the interests of public safety. In some cases, the master condominium policy may even cover some fixtures or issues that happen right inside your unit, but it depends on the insurer. For example, some policies protect the four walls, ceiling, and floor, while others offer single-entry coverage or fixtures like kitchen cabinets and sinks.
Still, the only way you won’t have to pay out of pocket for renovations is if the policy offers all-inclusive coverage.
Now that you know what your landlord may cover, let’s look at what you can do to cover the remainder of your unit.
Unlike condo association insurance, which provides common area protection, your unit insurance will cover what happens within your private living space. Typically, that includes everything from theft and accidental damage to renovations that require you to leave the premises for a while.
Very few condos and Homeowners Associations will waive your responsibility to obtain condo insurance—it is likely mandatory. Mortgage companies also make it a must. If your provider doesn’t, you should still consider it, though.
Can you easily pay outstanding repair, replacement, renovation, medical, or legal costs out of pocket? If not, and you want to avoid inadequate living conditions, missed payments, or bankruptcy, get coverage.
Keep reading to discover the top six reasons you should have this form of apartment ownership insurance.
Condominium insurance thoroughly protects everything in your unit from natural and man-made disasters. The policy should include the loss or destruction of the complex or the personal property within it. It may also provide additional funds if your condo proves temporarily unlivable.
If your master condo policy doesn’t cover the basic structure (walls, floor, and ceiling), then condo coverage should. It should also protect attached appliances and fixtures, like cabinetry, tiles, and sinks. It won’t protect common rooms or the building’s exterior since those areas are not your responsibility.
What exactly does a condo insurer cover you against? Standard coverage (an HO-6 policy) covers natural storms that bring about hail, lighting, and high winds (even hurricanes and tornadoes in most cases). It also protects against snow, ice, or sleet damage weighing down roofs or causing water damage, and the following:
No two insurers are the same, so ensure your policy can handle all potential hazards that could affect you and your home’s location. For instance, not all condo insurance policies cover flood damages. If you live in an area where that’s a factor, such as in low-lying areas or near bodies of water, find an appropriate insurer.
Other factors that may be slightly harder to insure might include the following:
You may only experience minor inconveniences for a short time if your condo needs to undergo repairs. However, when disasters leave the unit temporarily unavailable until the completion of professional restoration, this coverage has your back.
It pays for all unexpected bills and expenses (outside of the repairs) during your time away. If you prove the damages are extensive enough to have made your condo unlivable, your insurance company should assist you with a temporary residence (like a hotel). Since some individuals don’t have family or friends to stay with and many people have funds that are tight, the insurer may book a room for you in a hotel or motel and pick up the bill.
The condo insurer also understands that changing location comes with other repercussions to daily life, so they put aside funds such as:
You don’t have to pay for common room repairs and renovations yourself, whether out of pocket or with your condo insurance. However, a master policy does have a limit. If a landlord reaches that limit without fully fixing the issue, they may ask each condo owner in the building to pitch in and make up the difference.
Some surprisingly common examples include when the roof needs repairing or replacing after a windstorm or if the hallway outside your door needs reflooring. If you have secured loss assessment coverage, you won’t have to worry—your condo’s insurer will step in for you.
This type of support is especially beneficial if you’re the sole reason for the issue at hand. For instance, if a fire or water damage originates from your unit and affects the hallway, roof, or other common rooms, the landlord may ask you alone to pay the damages without neighbors chipping in. Be sure to check whether your insurance company will cover it in full.
Aside from additional living expenses and structural damage, condo insurance protects personal belongings once you pay your monthly premium, including:
However, you often get a choice as to how you cover these items. If you choose to accept the actual cash value, the insurance company will reimburse you at the item’s current cash value. However, if you’ve insured appliances, equipment, or electronics (like TVs, radios, or microwaves) that depreciate over time, that won’t be enough to purchase a new product.
If you opt for replacement cost coverage, the insurer will look at the item’s marketplace value when it’s new. That means, no matter how old or damaged your item becomes, your condo insurer can guarantee a payout of equal or similar value so that you can purchase a new product immediately.
While either of these two options cover most things, more expensive watches, jewelry, or heirlooms (like paintings and vases) will require some additional condo coverage. Also, you should be aware that traditional coverage sets a limit on how much it insures these items for. Upgrading to umbrella insurance acts as additional coverage for these situations.
Unfortunately, a lot more than the condo’s physical objects and surroundings could undergo damage. Have you thought about what would happen if an individual has an accident or sustains injuries on your property? Will your insurance take care of the legal and medical claims so you don’t have to?
You’re not legally or financially responsible for what happens outside your condominium’s front door. However, some slips and falls or similar accidents could become your problem. If they do, you’ll need personal liability coverage.
For example, imagine hiring an uninsured plumber or contractor or opening your home to a person who then falls on a wet floor, slips down a damaged step, or hits a swinging door. If they experience bodily injury during this incident, their first instinct may be to sue you for pain and suffering, especially if they were hurt badly. Whether it’s a broken leg or a dislocated shoulder, most insurers have a liability limit between $100,000 and $500,000.
The condo’s insurance company may also pay for non-injury-related incidents, such as accidentally damaging another person’s property. For instance, water might overflow from your condo’s bathroom or kitchen and seep into the unit beneath yours. You might also accidentally kick or fling something into your neighbor’s window, and ask your policy to pay for the damages.
Condo insurance also covers medical expenses if a liability case occurs, although to a slightly lesser degree. The insurer may pay out for any injuries that are even remotely your fault, such as your dog biting your neighbor or someone slipping on your steps and twisting their ankle.
In some cases, you may not have to worry about legal cases, especially with family and friends, but you’ll still want to cover their costs if they ride in an ambulance or have a hospital stay. It might also extend to them missing work, which could jeopardize their family or financial stability.
While your insurance company only promises at-fault liability payments, they’ll likely offer some medical payment coverage for these cases, as well.
Like travel insurance, life insurance, and all other types, you may have the option to add coverage options to your condo insurance policy for a slightly higher premium.
For instance, water backup coverage protects you if your drain or sewer line becomes clogged and causes nasty, unsanitary backflow into tubs, sinks, or toilets. This, as well as sump pump problems, frequently end in condo flooding, so your policy should cover drain and pipe repairs with the flood damage costs.
If you anticipate the potential for flooding in your home for any other reason, though, and you don’t have general policy coverage, why not add flood or water damage coverage? Other add-ons you can consider include the following:
You can expect a lot of things when you purchase a condo unit—more freedom and space than your old apartment to have larger gatherings and fewer maintenance tasks or fees than you would have with a big house. What you don’t expect is someone tripping over an electrical wire or your dog scratching up the neighbor’s door. Consider this a friendly reminder that it is always worth exploring your insurance options for condos and everything else!
Reach out to Insurdinary, and we’ll help you choose the right policy. Just answer a few simple questions and start comparing condo insurance rates from top insurers today!