Homeowners are responsible for their entire dwelling. Condo owners are not. Purchasing a condo means you have legal ownership and responsibility towards everything found inside your unit. The exterior, like your roof, facade, and shared amenities are typically an obligation of your homeowner’s association (HOA). That means if there are repairs or injuries it’s not your responsibility. However, not every HOA contract will include comprehensive coverage. Owners will need to search for condo insurance to help cover damages and liability for activities that happen inside the unit. Knowing what is typically covered in your contract and what will be your obligation will help you get the best coverage possible.
What the HOA Typically Covers
Knowing what your HOA will cover enables you to determine how much you might need for your condo insurance policy.
- Exterior damages – This would include repairing the roof or other damages to the outside of the building.
- Damages to share amenities – Tennis courts, pools, elevators, or even hallways are covered under HOA policies. If there is repair or maintenance needed your HOA will make that possible.
- Injuries to guests in common areas – Again common areas would be a pool, staircase, or walkway. If a guest sustains an injury in this area and tries to sue, it would fall on the shoulders of your HOA.
When You Will Need Condo Insurance
Your Unit Receives Damages
Condo owners don’t own the building, but they do own their unit. Everything inside from cabinets to lighting fixtures is the owner’s responsibilities. Depending on what the HOA puts in the contracts, condo owners will either get coverage through their own independent policy or be fully covered through the HOA. If an appliance is broken or damaged, condo insurance will cover the repairs. The same will be said for any other fixture found throughout the property as well. Fixtures are any permanent piece of the property that excludes floors, ceilings, and walls. If you don’t have coverage from your HOA, condo insurance is vital to keep your unit protected from unforeseen damages.
Your Condo is Robbed
Again, HOA policies are limited when it comes to protection. One area it falls short is against breaking and entering. Robberies take place every 13 to 16 seconds. Assets and valuables like your tv, computer, and clothing won’t be protected under your HOA contract. Having condo insurance will offer you an opportunity to replace important items that have been stolen from your unit. Personal property coverage is standard with most condo insurance policies.
There’s an Accident Within Your Unit
Liability is a significant component of condo insurance. It’s there to cover costs of medical bills or a possible lawsuit from personal injury inside your unit. If you plan to entertain guests frequently, take out a policy. Even if your HOA covers damages sustained to fixtures in the condo, most don’t have liability coverage. But, it’s worth it. You’ll also want to consider additional coverage if you plan on doing any renovations that would require workers to be onsite. Most contractors should include workers comp for their employees, but you might want to have liability coverage as a backup just in case.
Your Condo is Uninhabitable
On the off chance, you experience damages as severe as fire damage your condo insurance will come to your rescue. Most insurance policies will offer coverage or reimbursement for having to live elsewhere while your unit isn’t habitable. The insurer will pay for things like hotel stays and other expenses that might occur while having to live off your property due to adverse conditions.
Problems Arise and are Not Covered by HOA
Sometimes the HOA has to deal with repairs that surpass even their own coverage. A good example would be a hail storm damaging the exterior of the building. In some instances, it’s not uncommon for the HOA to reach out to their unit owners to help contribute funds. Condo insurance can make this a lot easier for owners. “Loss assessment” coverage can help cover either all or some of this amount.
Condo Insurance Nashville
Your homeowner’s association might not cover everything. Structural components are typically guaranteed by the HOA, losing your valuables might not receive the same adequate coverage. That’s where condo insurance steps in.
At Royce Williams Insurance, we will walk you through the basics of condo insurance to help you determine the best policy. We want you to understand how you can better protect your investment and get the most out of your coverage. Visit our website to learn more and get a free quote.