A condo is a unique property type because the condo owner only owns the interior of the structure. The condo association typically owns the land as well as the exterior of the structure. In addition, neighbors typically have condo units that butt up against the side, back or top of your own condo. This means that multiple entities or people may share exterior walls with you. When buying coverage for your condo, a unique type of insurance is needed. Condo insurance is specifically designed to provide property coverage as well as personal contents coverage for this type of property.
One component to a typical condo insurance policy is liability coverage. If someone is injured while inside your condo, such as through a fall accident or a dog bite event, liability insurance pays for your related legal expenses, their medical bills and more. Another component to this type of insurance is property coverage for the interior structure of the property. This may specifically relate to interior damage for a bad storm, criminal activity, fire and other events. Personal contents in the condo is also usually covered under a different type of coverage in your policy, and you can establish this coverage limit based on the value of your furnishings, clothing, electronics, appliances and more. Other types of optional coverage may also be available for your condo, such as mold and flood insurance.
Remember that you are responsible for paying your deductible when filing a claim. The deductible can be set by you, so ensure that the amount that you select is affordable for your budget. You can keep an equivalent amount of money saved at all times in your savings account so that you have the freedom to file a claim when needed.
Condo coverage is usually required by your condo lender, and it makes sense to purchase even if you do not have a lender requirement for it. Condo-related losses can be financially devastating in some cases, and insurance can protect you against these losses. Remember to periodically review and update this important insurance so that it always meets your needs.