When you buy a condominium (condo), you are automatically included in the insurance policy provided by the condo association. Does this mean that you’re off the hook on also buying condo insurance yourself?
What do you think?
The answer is no—you are not off the hook! In fact, neglecting to buy condo insurance is a huge financial risk! Today we’ll explore the issue of condo insurance and why you need it.
What’s The Difference Between A Condo And An Apartment?
The difference is ownership.
When you live in a condo, it’s because you bought it. “Condominium” is a legal term for a certain type of ownership. And when you buy a condo, you are buying more than just your unit; you are buying a share (part-ownership) of a larger body. All of your new neighbors in the condo’s complex will be your co-owners in this endeavor, and your common interests will be protected by the umbrella of your condo association. This condo association will, among other things, handle issues with common areas of the condominium complex, including insurance.
When you live in an apartment, it’s normally because you rent it. In these cases, the apartment complex is likely owned by a single person, or company, and the responsibility for purchasing insurance falls squarely on their shoulders.
What Is Condo Insurance?
Basically, condo insurance is an insurance policy designed specifically for individual owners of units in condominiums. The umbrella condo association will also provide insurance coverage, but this coverage is not enough to protect the interests of every individual resident. So if you own a condo, there should always be at least two insurance policies at play in order for you to be fully protected (that is, your personal condo insurance, and the condo association’s insurance).
The question remains though, what are the gaps in your condo association’s insurance policy that your individual condo insurance will need to cover?
What Does Condo Insurance Cover?
Think of it this way: because you own your condo, you are responsible for everything inside your unit, whereas your condo association will be responsible for protecting the condominium you are a part of as a whole. Usually condo insurance for individual owners covers all of the following (with a small deductible)…
- Damage to your possessions that are inside your condo (for example furniture, computers, art, etc.). This would include things like theft, vandalism, storm damage, and fire damage.
- Issues with your walls and floors, including carpeting.
- Personal liability coverage, which means that if any harm comes to somebody while they are a guest in your home (which could make your legally responsible), your insurance policy will cover it.
- Improvements or upgrades made to your unit.
- If something happens that renders your unit uninhabitable, your condo insurance will cover your extra costs of living during your displacement.
- If your condo association accesses you for damage resulting from a covered peril, Loss Assessment coverage may cover (even if your unit was not damaged).
Need Condo Insurance In The Nashville Area?
If you are buying a condo in the Nashville area, or simply looking for a new condo insurance provider, get in touch with Royce Williams today!