When buying condo insurance, you may think that the condo is covered by the Master Policy and that is all you need.
That is far from the truth.
Many Master Policies put forth by the condo association only cover the public areas and building structure in which your condo sits.
It does not cover anything inside of your condo.
Buying your own private insurance policy for your condo is what you need for property damage and liability.
Are you fully covered then? I hope that you are shaking your head no because you are not covered for a lot of things even at this point.
Here is a list of the add-ons that you can opt for with you insurance policy and what they offer you.
After reading, I'm sure you will have a better understanding of what you need to fully cover your condo and yourself from legal action.
Earthquakes & Floods With your private insurance policy you may see a list of natural events and happenings that cover your condo.
Maybe you think this list is enough or do you notice two events are missing? Floods and earthquakes are not covered by condo insurance unless you add on coverage for these natural events.
The policies are separate options that you must ask for when purchasing insurance to be covered.
Loss Assessment Loss assessment happens when damage occurs to the building and the members are sued for any reason.
The Master Policy may cover a part of the damage yet it is possible that it does not cover the total cost.
In that event, there may be an assessment that is charged to all of the owners of the units.
This add-on option would cover your part and reduce loss that may result from the legal action.
Belongings Items in your home are certainly precious to you and often expensive to purchase.
There are two types of options available to replace your belongings in the event they are stolen or damaged.
Opting for cash value will pay you the cost of the item with depreciation subtracted.
Replacement value, on the other hand, pays you the amount it would cost to buy a new item of the same type.
Floaters In addition, there is the chance that the insurance policy may set a limit to the amount that can be paid for items that are more expensive.
The floater option pays the difference for items that include collectibles, jewelry, and computers.
The cost is extra to add-on to the policy but it would be worth receiving the total amount of the item so that you are then able to buy a new one.
Adding on options may seem like a lot of extra money, but it can really save you more in the long run.
There are several discounts that are available that can reduce the rate for premiums when buying condo insurance.
Asking your local insurance agent about these add-ons and discounts can answer any questions you may have about them.
The agents can offer you many quotes to find the best one for your needs.