Good Condo insurance is quite different from typical homeowners’ insurance in some way, just like the condo units themselves are different from a normal single-family home. The condo association (or HOA) will usually have some insurance coverage to protect its members, but it’s important to know the level of coverage the HOA policy provides when one is seeking the additional protection of condo insurance. HOA coverage usually stops at the unit’s exterior walls. The condo homeowner is then responsible for any interior walls, fixtures, appliances, cabinetry, personal belongings and so on. The HOA normally protects the association from the financial effects of liability for accidents or injuries but does very little in safeguarding individual owners.
Condo homeowner insurance is engineered to safeguard the condo owner from the multitude of possible losses that are not covered by the usual HOA coverage. Essentially, one’s owned property is what is covered with this type of policy. If the condo homeowner were to be found liable for any damages, this is the policy will help. For instance, if a fire were to start in your home’s kitchen and then spread to the neighboring unit, this insurance can cover the damages.
Condo insurance safeguards the condo homeowner from losses resulting from damage by wind, fire, water damage or loss from theft or vandalism and so on. If a policyholder were to experience some kind of covered loss, then he or she would then file a claim with both the condo insurance company and, most often, with the HOA’s provider too. (Some claims include damage to both interior and exterior parts of the structure and, in such cases, both policies would likely be relevant. Keep in mind that supplemental coverage will normally be needed to cover floods and earthquakes.
The benefits of condo insurance can be quite considerable. Being properly covered can mean that are you protected from the financial consequences of damage or theft of any personally owned property. You will also have a myriad of other protections from loss or liability.