You’ve taken the plunge and opted for condo life. Now that the papers are signed, it seems like everything is taken care of for you—building maintenance, roof repairs, landscaping, insurance, etc. It’s time to relax because everything is covered, right?
Not quite. The insurance policy provided by the condo association typically covers the building structure and common areas, but what about potential structural damage to your unit and covering your belongings? Without a personal condo insurance policy, you could be left high and dry if your unit has water damage, it is damaged in a fire, condo is burglarized etc.
Condo Insurance Coverage Explained
Most condos need two insurance policies:
Master Policy: Generally provided by your condo association, this policy covers the physical structure of the building, including basement, roof, walls, elevators, lobbies, etc. Coverage provided on the HOA Master policy is subject to the CC&R’s (Covenants, Conditions and Restrictions), so make sure to review the CC&R’s as well as ongoing amendments to understand what the HOA master policy is responsible for in the event of a claim and what you are required to cover on a personal condo policy.
Personal Condo Policy: This will cover additional structural damage to your unit not covered by the HOA Master policy which can include cabinets, appliances, personal belongings, personal liability, etc. This also covers living expenses if you fall victim to a fire, theft, or other covered disasters and the condo becomes unlivable it will pay to relocate to either a hotel or another residence until the condo becomes livable.
Other insurance coverage to consider:
Umbrella Policy: If someone were to trip and fall inside or near your condo, they could sue both you and the condo association. Umbrella provides additional layers of liability protection and can protect against lawsuits that target both your current and future earnings.
Flood or Earthquake: Read the fine print on your policy. They often won’t cover damage due to these disasters. Additional coverage may be required if you live in a prone area.
Call our Carlsbad office today for a quote on your Condo Insurance at 760-795-2002 or our Temecula office at 951-296-6833
See Also: Home Insurance Near Brush Areas