Approximately one out of twenty people either own a condo that they rent out or live in, but only a few of these owners have proper insurance coverage. Typically, the Homeowners’ Association (HOA) insures the exterior of the condominium building and the commonly owned property while providing liability insurance for the association. However, the HOA insurance policy usually provides only limited coverage for the interior units.
In addition, the HOA insurance policy normally excludes coverage for your unit in cases such as theft of personal property, water damage caused by an uncommon pipe, and/or a slip-and-fall accident within your unit, this also includes water damage to your unit caused be a neighboring unit. Condominium insurance policies are designed specifically for these reasons. Protect yourself from high repair costs by getting proper insurance. Don’t get caught without insurance and paying out of pocket due to a claim.
A condominium insurance policy can also protect your personal property, personal liability, and the interior fixtures of your unit. Due to the current market crisis, many HOAs are reducing coverage on the Master Policy, leaving owners with financial losses when claims occur. The amount of coverage required for your unit will vary according to your HOA. While some HOAs will require you to insure the windows, flooring, wall covering, etc., others will cover the interior of the unit (excluding any improvements after the condo was initially built).
It is important to read your CC&Rs (Conditions, Covenants, & Restrictions) each year and talk to your Carlsbad Insurance agent to make sure there are no gaps in your coverage. Call our office for a quick no obligation home insurance quote on your condo today!