As a condo owner, your coverage is not responsible for protecting the entire building like a homeowners policy would. Instead, your coverage should fill the gaps of your homeowner’s association or HOA’s master insurance policy. It’s important to ask your HOA for a copy of the master policy before purchasing your condo insurance policy. Each condo owner’s coverage needs are different, but your coverage should be based on the assets you need to protect, your chance of loss, and your risk tolerance.
Your Assets – Your HOA’s master policy will not protect you in liability cases. In the event of a liability claim against you, you’ll want to have enough coverage on your condominium insurance policy to protect your assets. Medical bills and lawsuits can add up quickly if someone were to be bitten by your dog or fall down the stairs in your condo. In both cases, you would be held responsible. The more assets you have, the more coverage you should have on your policy. If your assets exceed the highest limits on your condo policy, you should also talk to your agent about an umbrella insurance policy.
Additionally, don’t forget to think about your personal belongings. In the event of a loss, how much personal belongings coverage would it take to replace all of your belongings? The best way to figure this out is to put together a home inventory. Your insurance agent can then help you determine the appropriate limits.
Your Chance of Loss – You need to protect the value of your home. While your HOA’s master insurance policy will cover common areas, the interior of your home is your responsibility, and you should have the coverage to protect and rebuild in the event of a disaster. You should consider any interior upgrades you have done, as well as the replacement value for your home and amenities.
Between your HOA’s master insurance policy and your new condo insurance policy, you may think that you’re completely covered. However, you should ask about other risks such as earthquakes and flooding.
Your Risk Tolerance – When evaluating your risk tolerance, you should consider factors such as your condo’s location and its age. Certain locations and older homes can sometimes be seen as a bigger risk in the eyes of an insurance company. On the other hand, a condo that has security systems, is in a gated community, etc. will be seen as less risky. These condo factors should be discussed with your insurance agent in order to find a carrier that will properly and affordably insure your condo.
It’s helpful to talk with a professional to match your coverage selections with your personal profile so that you’re covered but not over-insured. Ideally, you should get a copy of the master association policy before purchasing your policy.
InsuraMatch agents spend each and every day helping consumers with their individual needs, and they are trained in every aspect of condo insurance. Our pros can help you understand and choose a coverage that fits your unique situation; they are independent agents which means they will offer alternatives plus have the expertise to know where you can get the best value. Call for your free coverage evaluation at 844-232-2700 or schedule a call at your convenience.