Condo coverage is available to all property owners. It offers protection outside of the common area already covered aside from the building’s policy. Most property owners benefit from limiting their out-of-pocket costs that come with a potential loss. This makes condo coverage a necessity for property owners.
Basic types of coverage
There are two levels of coverage available. The lower level handles fire, lighting, theft, freezing of plumbing, and water. The higher level of coverage offered handles cosmetic damage like paint spills and burns to the countertop. The coverage option can be based on the person’s budget and willingness to cover substantial, out-of-pocket costs for the property.
Who is condo coverage for?
Condo coverage handles the internal portion of the specific structure. For example, there may be a policy in place to cover the building itself, but owners have to provide additional coverage for their specific unit. All property owners need to have condo insurance for their specific unit. Any person with a town house, apartment or condo may be eligible for this type of policy.
What does a condo policy cover?
The condo policy covers all personal belonging within a structure. If there are any improvements made to the structure, the policy will handle any renovations to the unit. The policy also covers the interior structure of the unit to include the walls and countertops. If a visitor becomes injured while inside the unit, the policy will cover any medical claims stemming from the accident. Little add-on options available include identity theft protection, in the event a person’s identity is stolen.
How does condo insurance work?
The coverage works much like any other traditional policy. The person must file a claim in order to take advantage of the various protections in a typical plan. The claim is first investigated to determine whether or not the damaged area affected is covered under the policy or under the interior of the specific unit. Once the claim is verified, the loss is covered.
The condo policy is designed for specific units, while the structure’s policy is designed to cover damage to common areas designated by the homeowner’s association. The policy meets specific needs and can always be increased as needs evolve.