Purchasing a condominium can be an exciting venture, especially if the condo is the buyer’s first home. However, as excited as the buyer may be, it’s vital that they start putting measures in place right away to protect their investment. Unfortunately, purchasing condominium insurance is often a confusing process, and many condo owners find it difficult to get the answers they need about the type and amount of coverage they should have. For those who find themselves in this situation, here’s what they need to know to craft a sound policy that will provide what they need in the event of a disaster.
Check Out The Master Policy
Simply put, the master policy is the insurance policy the condominium association uses to cover the building for repairs or rebuilding should it ever be damaged or destroyed. However, master policies don’t usually cover everything in each individual unit. Most master policies at least cover a condo owner’s bare walls, and some of them will cover the fixtures that came with the condo. Once the condo owner knows what is covered, they can get a replacement cost assessment for those parts of the structure not covered and get Condominium Insurance for that amount or greater.
Know What Extras Are Needed
Once the condo owner has created a Condominium Insurance policy that will cover structural repair or rebuilding, it’s time for them to consider what extra coverages they may need to add to the policy. The following policies are recommended at a minimum.
• Flood insurance, which is not typically included in general policies
• A policy that will cover damage caused by major system failures (for example, if the owner’s plumbing system backs up)
• Loss assessment coverage that will pay what the condo association charges each unit owner in the event that they have to pay a deductible to repair damage to a common area.
Condo insurance doesn’t have to be confusing, especially when the buyer understands what they are responsible for and what the condo association will cover. By taking the time to review necessary documents, assess the value of their own possessions, and get an understanding of coverage types, a condo owner will be able to create the perfect policy for their new home. Visit us website to Start an Online Quote Now and to learn more about how condo owners can protect their precious investment with the right insurance coverage.
