Condominium and building insurance can cover many common issues, especially those that most people face. Homeowners’ coverage can be purchased individually to protect the contents of a home and cover repair and replacement costs if a disaster occurs. Building coverage is needed for buildings owned by the condominium association, such as apartment buildings and townhouses. Condo owners are protected from liability claims if a building should be destroyed by fire or flood, or even if damage was caused by an insured neighbor.
Condo owners typically purchase coverage for the building only. Building insurance covers the physical structure of the condominium, but does not include contents like furniture, appliances, electronics, clothing, etc. Condo owners can get additional coverage for specific items, but will need to pay a premium to do so. In addition, building insurance does not normally cover common areas in a condominium such as foyers, pools, elevators and stairs. Condo owners should check with their insurance agent to determine if specific features of the condo are covered under their policy.
Condo owners can protect their personal assets from liability claims by obtaining homeowners’ insurance. Homeowners’ insurance protects personal belongings from theft, loss, damage and illness. Some companies offer special coverage for contents of a condominium unit, which may include money, jewelry, electronics, clothing, antiques, etc. The premiums for building insurance and homeowners’ insurance are usually lower than the premiums for owning a house. Therefore, it is often more affordable to purchase one type of insurance than to try to obtain multiple policies from different companies.
Condo insurance is relatively easy to purchase, although there are a few details that should be considered. The most important detail is whether the insurer will require an appraisal before paying out a claim. Many insurance companies will require a home appraisal, which should be based on a comparable home to the one being insured. Other companies may require no appraisal, but will require the homeowner to list all damage as to the structure, contents, appliances, furniture, etc.
Another detail to consider is whether or not there are excess coverage options. There may be different types of coverage available and the amounts can vary from one company to another. The homeowner should ask the insurer about excess coverage options. This is important because some policies provide coverage for damage or destruction to the contents of the home and some provide coverage for the structure itself. It is a good idea to understand all coverage options.
Homeowner should also inquire about renewal discounts. If the company has a preferred rate for renewal, a homeowner may want to inquire about whether they are eligible. The insurance company would likely require the homeowner to have met a certain minimum amount of coverage over the course of the policy. The company would then evaluate the homeowner’s policy to determine the best rate for the current policy.
Condominium and building coverage can be purchased from most major insurance carriers. Homeowners should first compare rates from at least three different companies to find the best coverage and premiums. After finding the best coverage at the best price, it is advisable to make sure that homeowners are able to maintain the policy. This means paying the premiums on time and not in a rush. Any lapse in payments could cause the policy to be canceled.
Finding a good company to protect the assets of homeowners is an important consideration. A high rated company will be willing to work with the homeowner. They will take the time to understand what the homeowner wants and need and will work with the homeowner to find a policy that will provide adequate protection for the value of the property.
