CONDO INSURANCE BASICS
Like buying a home, purchasing a Condominium often can be the most expensive purchase one makes in their lifetime. The Condominium Owner’s insurance policy is very similar to the Homeowner’s policy. The primary difference is that typically the Condominium Association provides coverage for the building structures through a master policy that covers all of the buildings. What is left to the individual Condo owner to cover is the interior of the unit and any ugrades, additions and/or alterations.
Property Coverage – Dwelling (Coverage A)
Typically, the actual condominium structure is covered under a master policy purchased and managed by the Homeowner’s Association. A Personal Lines Condominium Owner’s policy covers unit Owner’s Additions and Alterations, often called ‘inside the walls’ coverage. It covers upgrades you may have made, such as granite counter tops, upgraded flooring, custom fixtures, etc.
Property Coverage – Personal Property (Coverage C)
Also similar to a Homeowner’s policy the Condominium Owner’s policy provides coverage for all of your personal belongings….furniture, clothing, and other personal items. There are usually limitation on some items, such as fine arts, jewelry, money, etc; however, additional optonal coverages are available.
Loss of Use (Coverage D)
Loss of Use coverage is also similar to the same coverage found in the Homeowner’s insurance policy. It provides coverage for additional expenses you necessarily incur when your condominium is unavailable for your use due to a covered loss.
Liability Coverage (Coverage E)
The Condo Owner’s policy includes Liability coverage which provides protection from your legal responsibility or liability for injuries and damages that you may be responsible for. It also includes coverage for defense costs.
Medical Payments to Others (Coverage F)
Medical Expense coverage pays for necessary medical expenses incurred by others as a result of an injury that takes place in your home. This coverage is not available to you or your family members.