A condo homeowners insurance is an insurance policy that offers insurance for condo properties such as Transit City Condos from certain types of damages and it helps the condo homeowners to stay at peace. Also known as H06 insurance policy or walls-in coverage, a condo homeowner’s policy offers protection of an individual condo unit.
How Is Condo Homeowners Insurance Different?
You may be wondering what the difference between normal homeowner’s insurance is and a condo homeowner’s insurance. You should understand that the features are all similar because the risk is equal for both. Most condo insurance policies offer coverage for the specific condo unit, its personal property, and liabilities if any, along with the living expenses. The main difference that you can see here is the condo homeowners policy covers only for the specific condo unit, unlike for the whole home that is covered under normal home insurance.
Another aspect that you need to note is a condo homeowners insurance is different from a condo association’s master policy which covers all common areas of the whole condo unit. These include gyms, parking places, swimming pools, play areas, clubhouses, celebration halls, and the roof of the whole condominium unit. This condo association master policy is for the whole condo building entrances, while the condo homeowners insurance is specifically meant to provide coverage for your single condo unit.
If your seller already gave you a master policy, and you are happy with that solely, you may be disappointed later on. You should remember that there are many deductibles in a master policy. When you claim through a master policy, all that you are eligible to get is only your share among the total number of owners in your condominium on the whole. Which just means this would never suffice your condo insurance needs.
You have another option. You can include a deductible assessment coverage rider to your condo insurance that provides enough coverage when you finally receive your share from the deductible.
In addition, it’s important to understand the bylaws of your condo association when it comes to that deductible. Some condo associations will make individual owners responsible for the entire master policy deductible if the loss began in their unit — for instance, if a pipe bursts in your apartment that then floods the building.
What Does Condo Homeowners Insurance Cover?
The condo association’s master policy may cover some issues that might overlap with your condo homeowners insurance too. For example, a plumbing issue that is common for the whole condo will be covered under the master policy. On the other hand, the cost of repair and fixtures of the bathroom and sinks is something that you should spend on from your pocket.
Let’s talk about another instance- water damage. If the water damage is caused due to your own faulty AC or washing machine, only your condo homeowners insurance can be a savior. However, if the water damage to the condo unit is caused due to a leaky roof or your neighbor’s fault, then the master policy would help.
Most condo homeowner’s insurance policies cover a predefined list of perils including fire, theft, hail, and vandalism. If you need protection and coverage from any other sources of damage, you shall have to talk to your insurance provider and add Unit Owners Special Coverage A endorsement to your policy, which offers enhanced protection.
Such policies are termed as an “open peril” policy and are apt if you want to add your own probable causes that would damage your condo unit and its valuables. However, such open perils would not cover floods, earthquakes, and sinkholes.
Talk to your insurance provider and be clear about your requirements and choose from the best umbrella policy that fits your condo insurance needs better.
Most condo owners choose a condo homeowners insurance policy in such a manner that it covers the replacement cost value of a condo, in other words, the total cost that would be incurred to replicate the condo unit from scratch.
Note: There is another term that you should be familiar with when talking about condo homeowners insurance – Condo liability insurance. This is an insurance that covers the policyholder and the family members who reside with the policy holder in the condo. This includes pets too. This condo liability insurance offers coverage for injuries or damage to property. Generally, most condo insurance policies offer a minimum of $100,000 in liability coverage. You can also get a liability coverage up to $100,000. If you are such a customer who needs more coverage, an umbrella policy would be a better suggestion for you.
The Importance of Condo Homeowners Insurance
You cannot just keep calm and ignore a condo homeowners insurance on the notion that your seller has a master policy. The risk is the same for any property owner – either an individual house or a condo unit. It does not cover the fixtures, flooring, ceiling, and other personal valuables in your condo unit.
To be clear and precise, a master policy never covers any individual unit in specific. Period. It is as simple as that. As an owner of the condo, you are expected to have a separate condo homeowners insurance that suits your condo unit’s insurance needs and your possessions in the condo so you have peace of mind when something unexpected happens.
While opting for a condo homeowners insurance, you should consider all the points that you would for an individual property – fire, floods, theft, location such as Transit City, the time you spend there, additional situations that you may face in worst situations.
Never hold onto the notion that a large apartment complex means less risk. No. A risk is a risk anywhere.
When you owning property in connected home units such as condos and apartments, you never know when a fire in your neighbor’s home can spread to your unit. A condo homeowners insurance also gives coverage for situations when you as an owner cannot enter your condo for some unexpected reason.
While choosing Transit City Condominiums homeowners insurance, it is important that you make a perfect estimate of your possessions in your condo. You should make a good appraisal of valuables such as carpet, flooring, cabinets and wooden work done, glasses and mirrors that you used for building partitions, expensive decoration and household items, etc. while providing a valuation. This gives you peace of mind when you actually have to make a claim.
For further clarity, seek expert help from a reputed condo unit provider such as Transit City and get all your queries clarified as to why separate condo homeowners insurance is really needed for you.
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This article has been contributed by Filipp Kotlyar from Via Condos.