If you own a condo or are preparing to purchase a condo, protecting yourself against related property losses is important. One of the primary steps that you can take to enjoy a high level of financial protection against many types of loss events is to purchase condo insurance. A condo is a unique property type because the property owner only owns the interior of the structure. The exterior walls and even the roof may be owned by the condo community’s owners’ association. The walls shared with neighboring units may be owned partially by another property owner. When you buy insurance for your condo, you only need coverage for the portion of the property that you own, and this is what condo insurance offers.
When you set up new coverage for your condo, you must understand the different risk factors present. There is a liability risk factor, such as if someone else is injured inside your condo and you are responsible for their medical bills. There is also a risk of property damage and related loss if the interior of the condo is damaged. Theft of or damage to the interior contents of the condo can also present another type of risk to condo owners. Each of these types of risks are covered by common components of a condo policy. The primary components include liability insurance, property insurance and personal property insurance. You may also be able to add additional coverages to your policy as desired or needed, such as flood coverage or earthquake insurance. Understanding more about the inclusions and exclusions for each type of coverage available under a condo policy is important.
Buying condo coverage is not legally required, but your property lender may require you to buy a certain amount and type of coverage. Because coverage can protect you against significant financial losses, some condo owners feel more comfortable buying more than the required coverage. In addition to adjusting your coverage types and limits to meet your needs, you can also choose an insurance deductible that is affordable for your budget. Remember that adjusting the deductible gives you control over the premium amount.