Condo owners must consider all options for protecting their investment and getting the most out of the property. When buying a condo in a condo community, there are bylaws and regulations the new owners must follow. The rules are set up by the condo association, and they must provide approval for the potential buyers.
When purchasing the condo, they will need a standard condo policy and a master policy. Each of the policies protects the property and offers assistance for certain liabilities. The condo association will define how much coverage the new owner must have for the property.
What is Condo Insurance?
Standard condo insurance is purchased by the condo owner to cover their property. It provides coverage for the condo itself and the interior spaces of the property. This could include the walls, ceilings, floors, and any personal belongings that are stored inside the condo. It is not the same as a master policy, and the condo owner will have to secure the additional policy through the condo association. Condo owners can find out more about standard condo coverage by contacting Garrity Insurance now.
How Is a Master Policy Different?
Master policies are secured by paying specific due to the condo association that oversees the condo community. The master policies cover the exterior of the condo itself and all communal areas that are accessible by all condo owners and tenants. This policy provides funds to repair the exterior of the condo and community amenities if property damage happens.
A Review of Common Liabilities
Common liabilities for condo owners begin with premises liabilities inside the condo, around its exterior, or in communal areas of the community. The combination of the standard and master policies provides the condo owner with maximum protection if an accident happens, and a visitor becomes injured. They can file a claim through the applicable policy and compensate the visitor for their medical expenses, and the owner can avoid a serious financial loss.
Is the Condo Close to the Water?
Flood insurance is required for all residential properties that are in a designated flood zone, and the lender will conduct a flood search to confirm this information. If the condo owner is buying their property with a mortgage, they will need to purchase flood insurance to protect against regional perils that cause flood damage inside or around the property. A general rule of thumb is that if the property is close to any body of water, it is advisable to get flood coverage to protect their investment and avoid a serious financial loss because of hurricanes, tropical storms, and damage to barriers such as dams.
Does the Condo Coverage Apply to High-Value Items?
Condo owners will need to review additional coverage opportunities if they have high-valued items inside their property. For example, if they have artwork, jewelry, antiques, electronics, or appliances in their property, they need a rider for each of these items. A rider gives them coverage according to the exact value of the item, and an official appraisal is completed to identify this value. If the item is lost, stolen, or destroyed, the property owner gets funds to replace it if possible. If it cannot be replaced, they receive a cash settlement for the full value of the item.
Does the Condo Owner Have a Pet?
Condo owners who have pets living in their condo will need to get coverage for liabilities related to their pets. While their dogs may be friendly and don’t have a history of attacks, this doesn’t mean that the dog will not bite a visitor that seems threatening to them.
With dogs, they can become territorial and attack if they believe a person poses a threat to their home or their owner. By adding the dog to the property coverage, the condo owner gets protection for common liabilities related to their dog, and the coverage will pay for medical expenses and compensation for visitors or service providers that are injured during a dog attack.
Paying Common Dues to the Condo Association
Insurance coverage doesn’t pay any of the annual dues required by the condo association. The condo owner must submit these payments to the association each year to cover fees for the master policy and repairs for communal areas of the condo community.
By purchasing a condo policy, the property owner is not excluded from these requirements, and the standard policy doesn’t prevent them from facing the requirements of obtaining a master policy for their property. However, it is possible for them to get discounts if they decrease hazards around their property to lower the risk of accidents and injuries. They will need to discuss these details with the condo association.
Will the Condo Owner Rent Out Their Property?
If the condo owner intends to rent out their property, they will need to secure additional insurance policies to protect their investment and decrease financial losses. They will need rental property coverage, landlord’s insurance, and additional policies if they provide appliances or furnishings for the tenants.
It is recommended that the condo owner review risks with their insurer before they rent out the property to anyone. The risk assessments show them what hazard could emerge while renting the home and how much the coverage will cost each month. The free quotes help the property owner make sound choices about their investments.
When owning a condo, the property owner must purchase a standard condo policy in their name that covers the bare walls and interior spaces of their property. A condo association provides a master policy, and the new owner must pay dues each year for the policy. It provides help with repairs and liabilities that could happen when visitors come to the property.
Condo owners must also complete risk assessments and determine if there are further risks that could generate financial losses. For example, if they have a pet, they will need to get coverage for animal attacks that may occur in their condo. A free quote for coverage helps property owners find the best policies for their condos.
