Is condo insurance mandatory?
Countless companies and banks offer you condo insurance, but is condo insurance mandatory? In short, it’s not.
However, you should really think about condo insurance if you want your belongings, property and guests financially protected within your unit. There are usually three tiers of coverage, ranging from basic to special; talk with your broker to find out which level is right for you.
What’s the difference between building insurance and condo insurance?
Your building’s main insurance usually only covers the common areas; think about the main lobby, gym rooms, pools, elevators or other amenities. This shared policy is normally a portion of your “condo fees.” Your unit, and everything that happens therein, is your financial responsibility. Make sure to review your building’s included policy to understand what’s insured through this shared policy, and what’s not.
What is condo insurance?
Condo insurance is similar to home insurance in that it’s purchased to protect your personal belongings and physical property. Moreover, it protects you against any damage you may cause to other units through utility malfunction, damage, or hefty repair costs caused by renovations. In addition, you’ll have coverage for any injuries sustained by guests who visit your unit.
What does condo insurance cover, exactly?
Contents Insurance & Replacement Cost Coverage:
Say you leave your unit’s door unlocked one night while running to the convenience store or pizza spot around the corner and your new 55” 4K Ultra HD Curve TV gets stolen! Or maybe, more realistically, your personal laptop gets swiped. Contents insurance, attached to your condo insurance, will cover the cost to replace your belongings without depreciation.
Personal Liability or Shortfalls:
What if you’re doing some renovations to your unit with a friend and that friend sustains an injury that causes them to miss regular work? Or, what if the ceiling pipe you’re getting replaced falls and cracks your countertop? Your condo insurance will cover the costs of property damage or bodily injury within your unit. Your included building insurance would likely fall short in covering these accidental episodes, leaving you on the hook financially. Ouch.
All Risk and Improvements/Betterments Protection:
If you upgrade something in your unit, maybe you buy a new fridge or upgrade your shower, your improvements protection will insure the new values of your new upgrades so that you’ll receive full reimbursement in the event of a loss.
Think about it
At the end of the day, you need to assess the valuables and belongings in your condominium unit. Are you planning any future renovations, and/or are you planning to do them yourself? Do you live on the ground floor perhaps? Living in units that are accessible from the street can make your unit more vulnerable to property damage or theft.
For an in-depth analysis on how HUB Insurance Hunter can help you find the best quotes on condo insurance, or how we can help you take the necessary steps to make a claim, check out our explanationguide.