Owning a condominium offers many conveniences and advantages. However, condo insurance and homeowners insurance differ, and it is crucial to have the right coverage for this costly investment. While condominium insurance is a type of homeowners coverage, there are critical differences to understand. Learn more about the bottom line of condo insurance and why you need this essential coverage.
What Makes Owning a Condo Different from a Single-Family Home?
While condo coverage is a type of homeowner’s insurance, a condominium is usually considered part of a multi-family unit. As a result, the condo complex is usually managed by a homeowner’s association (HOA), and condo owners pay dues to the HOA to handle certain maintenance. Because of this unique situation, condo owners pay insurance for the parts of the property they own individually rather than what is jointly owned and maintained. Learn more about these critical differences and what coverage to get by contacting Garrity Insurance.
The HOA Plan
The HOA carries a master insurance plan for the structural aspects of the building and property they own. There are two basic types of master plans: an all-in policy and a bare-wall policy. The all-in policy offers the most benefits to condo owners, while a bare-wall policy just covers the unit’s exterior. Thus, if the condo has a bare wall policy, damages to items such as appliances, electrical systems, lighting, counters, plumbing systems, and electrical systems may not be covered under the HOA master plan.
Get to Know the Master Plan
With all that in mind, condo owners must ask about the HOA master plan to determine how much additional coverage they need for peace of mind. For example, if the HOA has a bare-wall policy, condo owners should definitely invest in a condo insurance policy to protect this valuable asset. Plus, sharing what the HOA master plan covers with your insurance professional helps them find the right condo insurance policy for your specific needs.
Condo Coverage Matters
With all the insurance variables to consider when buying a condo, it’s easy to see why investing in comprehensive condo insurance matters. The right coverage provides for the house and its contents but may exclude specific perils or conditions, such as theft, fire, and storm damage. So you also need to consider the exclusions when selecting a condo insurance policy to verify everything necessary is covered. Otherwise, it would help if you discussed more comprehensive coverage options with your insurance provider.
How Much Does Condo Insurance Cost?
Regarding pricing condo insurance, several factors influence the cost, such as the location and value of the home and the type of master policy maintained by your HOA. Your credit and claim history also influence how much you pay for condo insurance. Additionally, the amount of the deductible and the extent of coverage will determine how much you pay for a policy. However, when you consider the cost to repair or replace expensive components in your condo, it makes sense to invest in a condo insurance policy for peace of mind.
Owning a condo is different than owning a single-family home and requires attention to detail regarding insurance coverage. First, determine the level of coverage provided by the HOA master plan. Then, invest in a condo insurance policy that covers everything else to ensure your home is always protected.