Condos are still popular and in many states, have gained in popularity. Where the originals were built like apartment neighborhoods, now it is not unusual to see 30 story condo buildings dotting the coast and virtually sold out. Where there are condos, there is a condo owner association that is responsible for the exterior of the buildings and common areas.
For the unit owner, the inside of the unit, the liability risk, and personal property is the unit owner’s responsibility. This responsibility is easily transferred to an insurance company by way of the Condo Insurance Policy which contains a package of coverages:
Building Property Protection
This coverage provides protection for the interior of the condo that will include the walls, fixtures and cabinets, built-in bookcases, floor covering and ceiling.
Personal Property Coverage
The Personal Property Coverage provides protection for damage and loss to electronics, clothes, furniture, appliances and any other personal property not attached to your condo.
Personal Liability Coverage
Similar to homeowner liability, Personal Liability Coverage pays for injury expenses to a 3rd party that you are held legally liable for. Most insurers will provide a lower limit built into the package premium however, the unit owner can always elect a higher limit by paying the additional premium.
Endorsements to Consider
Although the typical condo policy will include a package of valuable coverages, there additional coverages available for an additional premium:
• Scheduled personal property – This endorsement is used to provide additional coverage of valuables such as jewelry, guns, art, furs and other collections.
• Unit Assessment – This coverage will reimburse you up to the limit you select for your share of an assessment charged by the condo owner’s association.
• Water Back-up – Not every condo policy offers water back-up as part of the package so you may need to endorse this on to your policy. This coverage pays for damage resulting from sewer back-up and clogged drains.
As with any insurance policy, it always makes sense to consult with an experienced agent who can help you determine the appropriate amount of insurance for your property, liability, and discuss additional coverages that may be necessary to provide the proper protection for your individual needs.
