Buying insurance raises a lot of questions. Over the years, we’ve helped many families and individuals in Middle Tennessee obtain condo insurance to help them protect what matters most. Because condo insurance is a little different than getting homeowners or renters insurance, we thought we’d answer the most common questions about condo insurance.
What is condo insurance and how is it different than home insurance?
A homeowner owns the entire dwelling. That means the external and internal structures. They’ll need a policy that covers everything that could become problematic like the roof, walls, and foundation.
Owning a condo means you own the inside of your unit rather than the entire building. You’ll have an HOA that helps you maintain the property and provides some level of insurance for aspects of your condo. But, these HOA plans don’t always extend to your personal belongings. Having condo insurance is coverage for those areas of your property.
What are the differences between my condo insurance and the HOA policy?
An HOA typically covers exterior damages. That means if anything happens to the roof, for example, it would more than likely be the HOA’s responsibility to get it fixed. Shared amenities such as the pool, stairways, sidewalks, and elevators might also be their responsibility rather than yours.
Some liability coverage is also present. A guest injured in one of the common areas could be protected under the HOA policy. The unit that you purchase is your responsibility, and you’ll need to get adequate insurance.
What will my condo insurance cover?
Standard policies include the following:
Liability Coverage
Liability is needed if someone decides to sue you because they are injured on your property. It can also help if you caused damage to another person’s condo.
Personal Property Coverage
Your possessions are covered under personal property. That includes everything from furniture to clothing.
Guest Medical Coverage
If you have a visitor who is injured, your guest medical coverage will kick in to help cover medical bills and expenses such as x-rays or ambulance rides.
Additional Living Expenses
A form of reimbursement, additional living expenses is handy if you are forced to relocate because you can’t live in your condo after a covered claim.
Building Property Protection
Additional coverage for property inside your condo that typically doesn’t belong to you as the owner. Any damages to these items and you might be able to claim it under this section.
When will I need condo insurance?
If your unit is damaged at any point in time, your condo insurance will help. Again, the HOA won’t cover everything so having a plan will help you stay protected if an appliance, cabinet, or fixtures is broken or damaged. The personal property coverage helps in the event of a robbery. Robberies take place every 13 to 16 seconds. Your insurance will help you replace anything that might’ve been stolen. Fires can temporarily uproot your life as you will be expected to live off-site. The additional living expenses will ease the financial burden of paying for two residences and possibly food.
If I want more protection, is that available?
Add-on coverage is standard for almost any policy — condo insurance included. The most common add-ons are:
Loss Assessment
Some condos share the expense of common areas. A fire that damages the stairwell might be the responsibility for all tenants. Loss assessment will cover your portion.
Flood Insurance
Flood insurance is not a standard portion of any policy. The sad thing is most people don’t think it will happen to them and never consider it. Flood insurance helps if a pipe bursts, sink leaks, or plumbing falters. Water damage like this is sometimes classified as “flood.”
Umbrella Insurance
When you reach the end of your liability coverage your umbrella insurance kicks in protecting you from owing large sums if someone is injured at your condo. It can also help for libel or slander.
Scheduled Personal Property
Sometimes if personal property coverage has a limit scheduled personal property can reimburse you for bigger ticket items. Jewelry or expensive electronics might only get $2,000. But, if the value is much higher, the scheduled personal property is an extension that covers the entire amount.
Nashville Condo Insurance
Don’t leave anything to chance. HOA policies are great because they help relieve some of the financial burdens, but they don’t cover everything. Think beyond the structural components that have a lot of value to you and get them covered with condo insurance. At Royce Williams Insurance, we can help you find the right level of coverage for all of your assets.
