What you need to know about Condo Insurance
Most people don’t know that condo insurance policies are different from renters or homeowners insurance. The main difference lies in the relationship between individual condo and Condo Corporation. The condo corporation and the unit owner work in such a manner that they complement each other by making sure all interests have been protected. In other words, while the Condo Corp is for protecting the building, the Unit Owner is for insuring the interior of an individual condo.
Most credible insurance companies have flexible policies that satisfy various arrangements. In fact, most people are unaware about what is actually covered by this policy and what they’re personally responsible for.
Third party liability: This coverage protects the owner of the condo from any lawsuits arising from the condo. For instance, if a water pipe breaks, it may cause flooding to the other units and the owner of the condo may be held responsible for any water damage or mold damage caused.
Contents or Personal Property: It covers moveable items in the condo like furniture and electronics. It’s your duty to make an estimate of the value of the personal belongings to get the right policy limit. Most insurance companies use a Replacement Cost valuation; this is the amount it will it cost you to buy new items.
Improvements & Betterments: It covers the features that have been upgraded in the individual unit. The value is based on the cost of improvements beyond the cost of the basic unit.
Additional Living Expenses: In the event that some of the insured features of your condo like basic bathroom make the condo inhabitable, the package will cover your additional living expenses while it’s being repaired.
Loss Assessment: In the event that the property incurs liability and the Condo Corporation’s insurance coverage is inadequate to provide coverage, the loss assessment will complement.