Condo Insurance Explained
For some, a condominium is a great option for home ownership and good condo insurance is the way to protect the condo home over time. As is usually the case, buying a home, even in the form of a town home or condo, is easily the biggest investment a person will ever make. Understanding this will inevitably lead to the conclusion that such a huge investment should be well protected. With no condo insurance coverage, such events as fires, kitchen or bathroom flooding and a myriad of other issues can (and likely will) impact condo homeowners over time. It is important to keep in mind that condo insurance is mandated by mortgage lenders since it provides the person paying the loan (and the institution lending the money) with vital financial protection from the consequences of property damage and other losses.
What it Provides
This kind of coverage, as the name implies, is designed for condo owners to buy. Condos are unique from other homes and this is due to the rather unusual fact that normally just the inside of the structure is owned by the individual. (The condo association owns the exterior of the units.) So, this special coverage is necessary to help an owner in recovering after a financial loss impacts the interior of a condo, which is mostly NOT covered by the HOA insurance protection.
Kinds of Coverage
There are various kinds of coverage in the marketplace, but most help to pay for repairs and renovations to the aforementioned interiors of condos. There are policies that also pay to replace personal contents, such as furniture and electronics, lost in some event or accident. If one is displaced from the condo for a period of time, condo insurance policies can also pay for you to take advantage of a hotel (or another living option) while the condominium is being repaired. Most condo policies will also include a liability component. Since someone else getting injured on your property can happen, there is liability coverage for legal expenses and other related bills.
Some Further Details
If/when a claim is filed, there will be a deductible that the policyholder will first have to pay before coverage kicks in. Note that condo coverage is often mandated by your mortgage company. Anyway, due to its many benefits, this protection is not something anyone would likely want to go without.