When you purchase a condominium, there are a lot of things that are provided in your association or condo owner dues. For that reason, there is some confusion as to why you need condominium insurance, but it is important to understand what is covered by the “common grounds” portion of condominium ownership. Generally, most condominiums provide the building and property insurance, as it applies to the exteriors of the buildings, liability if somebody slips in the parking lot or the contents of common grounds, such as the television in the clubhouse. Outside of those items, the condo owners association’s insurance policy does not cover your interior walls, personal belongings and any injuries that might occur in your condo.
For this reason, there are specific insurance policies that are written for condo owners. The condominium insurance for the interior of your condo will cover your contents and liability, as it applies to your specific condo. In the event you have a kitchen fire that damages the interior of your condominium, it would be your condominium insurance that would cover the damage.
It is easy to see why some people might have a large loss before they realize that their claim isn’t covered, unless they have their own condominium insurance. Just like a homeowner’s policy, you need to protect the interior surfaces of the condominium and your belongings that are inside the condo. In addition, there will be a liability portion of the policy that covers others that are injured while visiting you, if the injury occurs inside of your condo. In the event an entire building catches on fire, the condo association insurance would cover the replacement of the building, but it would be your individual condominium insurance that would protect your specific condo interior and personal belongings.
If you don’t understand the advantages or disadvantages of owning a condo policy of your own, an insurance expert can explain it to you because this is a basic example of the reasons you might need condominium insurance, but there are many other reasons to be considered. If your condominium is on a rental program, it is certain you will have others staying in your condo and the liability risk will be much greater. This is a situation where a renter’s policy or supplemental rider might be required and those with mortgages on their condominium will have lender requirements to satisfy.
The good news is that condominium insurance is reasonably priced and offers the protection you need for your financial well-being and your belongings. Anybody that is unable to see the value of this type of insurance will certainly understand it, once they have a claim occur and the condo association insurance policy won’t cover it. It is protection that is affordable enough that you can hardly take the chance that anything might happen and when you are sharing a building with others, the likelihood of fire and other mishaps can be increased. This is all the more reason to protect your personal assets with the proper condominium insurance policy.
