Buying insurance for your condo is quite different than getting a standard homeowner’s insurance policy. Why? Because condos are different than houses, of course. Yes, you’re purchasing insurance on a property that you own, but thanks to the way that condo units are set up, you’ll need a policy specific for protecting this type of dwelling.
What do you need to know when buying condo insurance? How does it differ from standard homeowner’s insurance? What’s a master policy? What do insurance agents mean by individual coverage? We’ll answer all of those questions and more right here, so you have the comprehensive coverage you need when you need it.
Condo or HOA Master Policy Insurance
Your condo unit or the homeowner’s association associated with it (or both, depending on how everything is set up) has a master policy on the building. This policy is designed to cover the building itself, including the foundation, hallways, entry foyer, and roof, among other things. Any communal space is included in this master policy, which is designed to protect the property owned by the condo association, but not the individual condo owners.
In some cases, the insurance may extend to the plumbing and electrical systems in the building, which means that it would cover the systems in every individual condo unit, should something go wrong with them.
Individual Condo Insurance
Individual condo insurance and renter’s insurance have some things in common, as both cover personal property and liability. However, condo insurance goes a few steps further in order to provide more coverage, because those with it own, not rent, their properties. The typical individual condo insurance policy includes:
- Interior Damage – While condo master insurance covers the exterior walls and hallways of the building, it doesn’t extend to the interior of your condo. Interior damage, like that to the walls, ceilings, and floors of your space, is instead covered in an individual policy.
- Personal Property – Everything inside of your condo, from your furniture to your appliances and personal goods is covered by your individual condo insurance policy. Of course, if you have any expensive collections, jewelry, or very high-end electronics, they’ll need to be covered by a separate rider.
- Liability – When a person is injured inside of your condo unit, your liability insurance will kick in and may pay for their medical expenses and more.
- Living Expenses – If you end up having to leave your condo for a certain period of time, such as after a fire, flood, or windstorm, then your individual condo plan will cover some of your living expenses. These can include hotel fees, emergency purchases, and more.
Specialty Condo Insurance
In addition to individual condo insurance policies, there are some specialty policies that you can have in place. These include coverage for flooding, high winds, hurricanes, and more, depending on your location. Typically, individual condo insurance doesn’t cover any of these things, unless the flooding comes from broken pipes. Anything that’s caused by nature, like hurricanes and major wind or rainstorms, isn’t included in your standard policy. If you live in an area prone to these things, contact your insurance agent to see if you need these additional policies.
Have Questions? Contact Charlotte Insurance
Want to learn more about master policies and individual condo coverage? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the condominium coverage plan you need.