The Ins and Outs of Condo Insurance
A condo is really not much different than an apartment with the basic difference being that you own it rather than rent it. Because of the special situation of a condominium, the fact that you own the dwelling within a building but do not own the actual building, a good condo insurance policy works slightly differently from traditional homeowners insurance.
Condo insurance coverage is a kind of a property and casualty insurance policy that safeguards your personal belongings that live within your condo, and, with certain policies, will also cover the repair or replacement of belongings like appliances, fixtures, and so on. Condo policies are for those who live in a condo unit that the person owns. Individuals who live in rented condos or who own a condo but then have tenants living in it will need to purchase different kinds of coverage.
Condo policies function like most other kinds of property and casualty insurance. Should you wish to file a claim, you would need to first contact your insurance professional and arrange for an adjuster to come by and view the damage. Once a claim has been approved, your insurance provider will provide a settlement offer. In some cases where one loses the use of their condo due to damages, the policy can often cover living expenses until the time one can move back into the unit.
There are basically two kinds of condo insurance coverage. Which type you choose will depend on what type of policy coverage the HOA carries. If the homeowners association has an “all-in” policy that would indicate that it protects that which is fixed within your condo, like walls, floors and even appliances. In this case, one would need only to obtain coverage for his or her personal belongings. If the owner has “bare walls” coverage, then the condo owner must have insurance protect those aforementioned fixed items in addition to the personal possessions. It will serve one well to check with the HOA to ascertain which kind of policy is held.