A condo insurance policy is required to protect your condominium unit. It is purchased by the condo unit owners and provides coverage for your belongings, and repairs caused by perils, injuries, etc.
A standard condo insurance policy includes a list of coverages to protect your unit and belongings:
- Personal Liability Coverage: If somebody slips, falls, or is injured while visiting your condo, the liability protection coverage will help you. It will pay for the legal expenses and medical bills of your guests.
- Personal Property Coverage: Personal belongings such as clothing, electronic appliances, furniture, etc are protected under the condo insurance policy. In case they are damaged or stolen, the coverage will help to replace or repair them.
- Building Property Protection: This coverage protects the interior of your condominium unit. It will help you pay for repairs of the walls if the property damage is caused by a covered peril.
- Guest Medical: It helps in coverage of the medical expenses for a guest injured by an accident on your property.
- Dwelling Coverage: It protects the condo structure and future upgrades such as hardwood flooring.
- Loss of use coverage: If you need to temporarily locate, the policy pays for additional living expenses. These may include hotel bills or gas money.
- Loss assessment coverage: The condo’s shared spaces or building exterior may become damaged. The extra costs (besides the HOA policy coverage) are paid by the condo insurance policy.
Perils included under condo insurance coverage:
A standard condo insurance policy protects against any of the following hazards:
- Fire and lightning
- Riots
- Vandalism
- Theft
- Accidental discharge of water
- Volcanic eruption
- Short circuit damage
- Smoke damage
- Windstorm
The condo owners can choose from various types of personal property coverage:
Actual Cash Coverage: It pays for the depreciated value of the belongings damaged by a covered peril.
Replacement Cost Coverage: It reimburses the cost difference between the actual cash value of the belonging and the money you paid to replace or repair them.
How does it differ from HOA Condo Insurance and Individual Condo Insurance?
The master insurance policy or the Homeowners Association Policy covers the common areas and shared amenities of your condo unit. These include elevators, swimming pools, lobbies, etc.
Individual condominium insurance provides coverage for the interior of the unit. It offers protection for the belongings and guest medical coverage.
What are the additional coverages that can be added to the Condo Policy?
Both the condo insurance and master policies come with exclusions. You may purchase additional coverages to make your condo policy more holistic.
- Flood Insurance: A typical condo insurance policy doesn’t protect against water damage from flooding. If you live in an area that’s prone to hurricanes, you may consider purchasing an additional flood insurance policy.
- Earthquake Coverage: An additional premium or a standalone earthquake insurance policy will protect your condo from the damage caused by earthquakes.
- Second Home Insurance: A standard condo insurance policy won’t provide coverage for the losses if your condo is vacant for more than a month. If it’s a vacation home, you may consider buying an additional second home insurance policy.
- Water Backup Coverage: Water damage that results from drain or sewer backups is not covered under the condo insurance policy.
Condo HOA Insurance vs. Personal Condo Insurance
Why do you need a Condo Insurance Policy?
Though the HOA master policy can be extensive, it doesn’t provide coverage for everything. Complementing it with a condo insurance policy, you can be secure about both the interior and exterior of your condo unit. It will also be helpful if you wish to rent out your condo.
Cathy Sink Agency offers affordable Condo insurance in Florida. Our team will make sure that you have coverage that adequately meets your condo needs. We offer better service and quicker claims resolution.
If you’re looking for custom condo insurance in Cape Coral, FL, contact our agents at Cathy Sink Agency. Get a condo insurance quote today and learn how condo insurance can protect you and your belongings!