@hendrikwill
While we all would like nothing more than to cruise through life trouble-free officers, it’s not wise to assume that this is how it will always be. It’s essential to be prepared for unexpected incidents at all times, and owning a condo is no exception. Whether you own the whole condo or just a unit, condo insurance will protect your assets from several things. The condo association buys condo master insurance that will cover the basics like walls, floors, and roofs. However, if you own a unit, you need a lot more than that. Before making any decisions, you have to know what the condo master insurance covers and what it doesn’t cover.
In any case, there are many reasons that getting insurance for your condo is a good idea.
1. Renovations
Any upgrades made to your unit will not be included in your association’s master policy no matter how comprehensive it is. Some master insurance policies cover only the appliances that come with the unit. So if you bought a new TV or a bigger state-of-the-art fridge and they get destroyed in a fire, the master insurance policy will not cover the difference between your appliances and the original ones. Buying condo insurance for your unit ensures that any upgrades will be protected, whether you completely renovated the kitchen, refurnished the whole unit, or redid the floors. Always be sure to inform your insurance company about any renovations.
2. Covering Additional Living Expenses
This type of insurance is essential for both condo owners and condo unit owners, in case the unit cannot be occupied while undergoing repairs. This insurance helps with any expenses you need to cover while your unit is being repaired. All hotel bills, restaurant meals, and other expenses will be covered if you have comprehensive master insurance for your condo.
3. Loss Assessment Coverage
The association’s master policy may cover some of the cost of repairing damage to the building; however, the association might require each unit owner to contribute funds to make up the difference. Any costs surpassing the limit of the master policy will be distributed among the unit owners, and in that case, you will need loss assessment coverage to help cover some or all of the required payment. Keep in mind, you may be forced to pay a large deductible if the damage was your fault. For example, if you accidentally started a fire and it spread to neighboring units, the association will hold you responsible for the damages and ask you to pay for the cost of damages exceeding their insurance limit. In this situation, loss assessment coverage will save you from paying a hefty bill.
4. Liability Coverage
Accidents happen, and they are more likely to happen in common or shared places around your condo. Liability coverage will help you cover any legal or medical costs if anyone files a lawsuit against your condo and is found responsible for the accident. It’s also useful for covering any costs related to damages to someone else’s property. While it is not required, the experts at https://www.lopriore.com/condo-master-insurance-policy/ explain that it is vital for condo unit owners. Liability coverage would prove very beneficial to them if they damage another person’s property, for instance, or if their dog bites someone. It may seem unlikely, but if someone does get injured while visiting your unit, liability coverage will help cover their medical costs and lost wages and could be a huge lifesaver for you financially.
5. Building and Personal Property Coverage
There are different levels of condo master insurance that will cover the building itself. Before you buy a condo policy, check what your condo master insurance covers first. The dwelling coverage will cover the costs of your unit’s interior repairs. If the condo’s master insurance is all-inclusive or all-in coverage, it means that it will cover every item built into your unit including appliances, light fixtures, wall decorations, and cabinets along with any improvements made to them.
Typically, you won’t need dwelling coverage. However, if you are going to make improvements and the condo master insurance is single entity coverage, it’s better to include dwelling coverage in your unit insurance policy to protect every improvement you’ve made.
There is another type of condo master insurance called bare walls coverage that includes walls, ceilings, and floors only, and it doesn’t cover anything else. With this sort of plan, it’s essential to have dwelling coverage to protect your appliances, interior designs, and the unit itself.
Keep in mind that the master policy doesn’t cover your personal property at all. Your furniture, computer, jewelry, and other belongings are in danger from disasters or theft if you don’t have personal property coverage.
6. Comprehensive Condo Master Insurance
Comprehensive condo master insurance protects your condo from various unexpected events, disasters, and theft. Purchasing directors and officer’s liability insurance will protect key members of the association from lawsuits against their performance on the board. In addition, crime and fidelity insurance covers any theft or financial misconduct by any association board member.
There is also insurance that will cover the damage and income loss caused by equipment breakdown of any mechanical system including steam boilers. Additionally, if you have workers around the condo, it’s wise to include workers’ compensation insurance to cover the costs of work-related injuries or illnesses. As a condo owner, you should consider an umbrella policy that will protect your investment from a wide variety of risks, and at the same time, will be more affordable than purchasing individual policies.
It’s evident that a condo insurance policy is essential for both condo owners and unit owners, as it protects them from various incidents that can affect them dramatically. As a unit owner, always check the master policy to know which policies you need in your individual insurance policy. A good condo master insurance policy will make sure you’re protected from lawsuits, disasters, and accidents, but probably isn’t enough on its own. Supplemental coverage will better prepare you for additional unexpected events and could end up saving you money, time, and hassle in the long run.