Condo insurance can be confusing in many ways. It also can become a nightmare when one has to deal with cashing in on a claim in the event that your condo becomes uninhabitable. For this article we will discuss the basic coverages you should have and explain what your Condos Association Master Policy generally covers.
First off, lets discuss what the Master Policy covers in the event that something happens to your humble abode. The main reason for the association’s policy to cover your condo is to be able to reconstruct the building in the case of fire, earthquake or other natural disaster that would utterly destroy your condominiums building. Basically their policy is in place to cover rebuilding the structural elements on the building to be able to reform the over all building. This would entail steel beams, the studs in your walls, interior pluming and exterior finishes such as bricks and roofing tiles. Where their coverage ends is usually called out on a Accesor Parcel Map of the building. This will always be indicated on the map to show where ownership lies between the individual condo unit owner and the Condo Associations ownership. For some, condo associations will only cover up to the wood studs for a particular unit which would leave the unit owner responsible for sheet rock and paint repair in the case of damage. This is all spelled out on the map and is filed with each cities record and planning department. Knowing where you would be responsible financially in case of a huge disaster to your condo can help you pick out witch and how much you need for your condo insurance policy.
There are typically three parts to your condo insurance policy when you go to purchase one from a company. These entail Personal Liability, Personal Property and Dwelling. The first one, Liability will often cover an amount of money in the event that someone gets hurt while they are on your property. Lets say you have some friends over for dinner. One of their kids need to use the bathroom and happen to slip and hit their head on the sink. The next day your are handed a summons for court because your friends are taking you to court to pay for the injuries their child incurred from slipping on your floor. If you have a coverage of 200,000 thousand and they sue you for 100,000 thousand your liability insurance would cover the lawsuit, minus your deductible of course.
The second kind of coverage, Personal Property will cover your belongings. Most are familiar with this type of insurance if they have ever rented before. This will cover your personal property in the event that a water pipe breaks and say it destroys your big screen TV, stereo system and computer all in one fail swoop. This type of insurance would help replace your broken electronics in that type of situation. Of course when you have this type of insurance it is always good to go through and take pictures and save receipts of your most expensive possessions so when you go to file your claim you can be sure to get reimbursed for the amount it would take to replace that new big screen TV.
The last kind of coverage is Dwelling. This one relates to covering other elements that would not be covered under the Condos Association Master Policy. So lets go back to that flood that destroyed your electronics. It could be a busted pipe of water that came through the ceiling and damages sheet rock and went on to ruin that newly installed wood flooring you just put in. Typically in this instance the plumbing will be fixed by the Condos Association Master Policy and your wood flooring, sheet rock and painting would have to be covered from your dwelling insurance.
We hope this article provided you with a little more knowledge on how to figure out what you are responsible for and what is covered in a condo insurance policy. If you would like to see what great deals we are offering on great condo insurance please visit our online form. See for yourself how affordable your condo insurance can be.
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