If you’re buying a condominium, the condominium association will have insurance for any perils in the common and exterior areas. You’ll be needing condo insurance in the event anything might happen inside of your unit, like theft, a fire or a serious injury that a visitor suffers on your property. Here’s what standard condo insurance typically covers.
A person might trip and fall over a coffee table, a child’s toy or even a pet. If that individual is seriously injured, you could be facing a lawsuit. If a personal injury claim or a lawsuit is filed, liability insurance typically pays your guest’s damages along with the costs of your legal fees. Many people purchase additional umbrella coverage for liability. Most umbrella insurance starts at $1 million of coverage, and it’s surprisingly inexpensive. If you have medical expense coverage, your insurer might even cover an injured guest’s routine medical costs, regardless of fault.
Interior Structure Protection
Assuming the interior walls or flooring of your unit are damaged by a fire or other peril, this coverage helps you pay for repairs. Even items like built-in cabinets, bookcases or kitchen and bathroom fixtures are ordinarily covered.
Condo insurance also covers personal property like furniture, appliances, electronics, and clothing. If items of personal property are destroyed, damaged or stolen, you may be able to repair or replace them. Most personal property coverage allows you to select either the actual cash value of the property or its replacement cost. Actual cash value contemplates depreciation though. Replacement cost doesn’t. Your personal property is only insured up to a certain limit. Special endorsements are available for more valuable items like jewelry or artwork.
Since the common areas and exterior of the condominium property are insured by the association, your condo insurance should be significantly less costly than a standard homeowners policy. Your insurance agent should be able to custom fit individualized coverage for whatever you need.