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Important details about condo insurance policies

21st January 2021 Print

Condo owners need condo insurance to cover their home and protect it against common perils. It is paramount to get adequate protection for the home, and a condo policy offers comprehensive coverage for the interior spaces of the property and items inside the property.

Condo owners must also understand that master policies are necessary, too, and the condo association provides these policies. Even review how much coverage the property owner needs, they should consider all risks they face by living in a condo and nearby the beach.

Protection Against Personal Liabilities

Condo owners can face a multitude of liabilities when allowing others into or onto the property. There are several potential hazards they must consider when conducting risk mitigation. For example, guests that come into their home must remain safer throughout their stay.

The property owner must maintain control over their pets and prevent them from biting or attacking their guests. If a guest sustains an injury, they could file a legal claim against the property owner. Condo owners can learn more about condo insurance by contacting Garrity Insurance today.

Payment for Medical Expenses for Injured Guests

The insurance policies include liability coverage that pays for medical expenses for any guest that becomes injured inside the property. The property owner could avoid a serious financial loss by filing a claim through their insurance and paying for these expenses. As long as they cover the victim's costs, it could eliminate the potential for a lawsuit as long as the medical costs do not exceed the maximum coverage amount.

Coverage for the Interior of the Property

The condo insurance covers interior spaces such as the bare walls, ceilings, and flooring. If the roof leaks, the condo insurance covers all damage inside the property. It doesn't cover the roofing as extensively as the master policy. Whenever damage happens inside the condo, the property owner can get the help they need through the policy to restore their home.

It just protects the interior spaces. The property owner can file a claim if a roof leak or water leak causes damage inside their condo. The property owner must review the terms of their condo insurance to identify all conditions in which coverage is available.

Personal Belongings Coverage

Personal belongings inside the property are covered under the condo insurance policy, and the property owner can get funds to replace them if they are damaged, stolen, or lost. The policy provides a predetermined amount of money for the personal belongings.

The coverage won't present the highest level of coverage for excessively expensive items, and the property owner will need additional coverage for these items. It is best if they review the maximum coverage amount and determine if additional coverage is necessary.

Why All Owners Need a Master Policy

The master policy covers all exterior areas of the condo and the condo community. This includes all communal areas where all residents can congregate. All on-site amenities are covered under the policy, and if damage happens the condo association completes a claim to cover the damage. All residents pay dues to secure the master policy and fulfill their responsibilities.

It covers the exterior walls, the roofing, and any fixtures that connect directly to the condo. All swimming pools, clubhouses, and facilities available to the residents are covered by the policy.

Flood Coverage for Beachfront Condos

Even with a condo and master policy, the properties are not covered enough against flood damage. Most condos are constructed on the beach, and they are in designated flood zones. The flood policy provides coverage specifically for flood damage, and the property owner won't have to worry that their condo won't be covered if a hurricane happens.

The flood policy is designed specifically for these events and perils. The property owner gets enough coverage for the interior and exterior of their condo. Remediation services after a flood or natural disaster are covered under the flood insurance. This includes flood water removal, mold treatment, and restoration services to eliminate all flood damage and restore the property appropriately.

Adding Riders for Expensive Items

Riders are an addition that is added to a property policy, and it is recommended if the condo owner has any items inside the home that have a higher-than-average value. This could include artwork, jewelry, designer clothing or shoes, and furnishings.

The rider provides an appraised value for each of these items, and the value is what the property owner receives if the item is destroyed, lost, or stolen. However, the event that caused the loss must be included in the condo insurance policy. For example, a break-in is covered under the policy, and if the owner's jewelry is stolen, they could get coverage through the rider if it was included.

Understanding Deductibles and When Coverage is Available

When filing a claim, the property owner will have to pay their deductible before they receive any coverage through their condo policy. For example, if the deductible is $500, the property owner must pay $500 worth of the loss before they receive any coverage through their policy for the property or lost items.

The condo owner must consider all events that are covered under the policy before they start a claim. If the event isn't covered under the policy, the claim will be denied, and the homeowner will not get the coverage they need for the loss.

Condo owners must evaluate everything that is covered under their condo insurance policy. When mitigating risks, the property owner must consider what liabilities could emerge while living in a condo. First, condo owners that invite others into their home face the risk of accidents if they do not keep the condo maintained. If they have pets, they need to get coverage that protects against these liabilities, too.

The property coverage applies to property damage caused by natural disasters, fires, and break-ins. Properties that are in a flood zone will need additional flood coverage to protect the property more thoroughly. When assessing condo coverage, the property owner must review coverage amounts and what items are included in the policy.