What you need to know about condo insurance
Living in a condo is like living in an apartment you own. There are a few differences, though, including what kind of insurance you need to have.
What is it?
Condo insurance is a kind of property insurance that covers you when you live in a condo. Depending on the level of coverage you have, it may cover only your personal possessions or it may also cover some of the fixed items in the condo unit. It also may offer liability coverage as well as coverage for loss of use of the unit.
Who is it for?
Condominium insurance is for people who own their own condo unit and live in that unit. If you do not own the unit you live in or if you own it but rent it out, you may need different types of insurance.
How does it work?
Insurance for condos works much like other types of property insurance. If your condo unit is damaged, you must get in touch with your insurer to start a claim. An insurance adjuster will examine the damage to make sure it is covered and what financial liability the insurer has. The insurer will either give you a check or pay for repairs itself -- minus whatever deductible you owe. If the unit is unlivable, your insurer will pay for you to live somewhere else until it is habitable.
Different types of coverage
There are two main types of condo insurance, and the type you have depends largely on your building owner. If the building owner has bare walls coverage, it means nothing inside your unit, including walls, floors and fixtures, is covered and you must get a policy that insures those things. If your building owner has all-in coverage, then you only need a policy that insures your personal possessions.
The main benefit of having insurance on your condo is that the unit and your possessions are covered against loss from a fire or weather event, such as a tornado. Additional benefits include personal liability coverage and coverage against having to pay to live somewhere else if the condo is uninhabitable.