Condo Insurance Policies
While your condominium association's master insurance policy covers the exterior of your building along with the common elements, condo insurance protects the interior of your condominium unit, including your personal property inside the unit. After reviewing your association's master policy, you can make your decision on what condo insurance coverage you'll be needing to fill in the gaps on what the master policy doesn't cover.
What the master policy typically doesn't cover includes damage to interior walls, floors, ceilings or damage to improvements or alterations you've made inside the unit. If your garage is attached to your unit, you'll want that insured too. A good example of why you need condominium insurance is if the entire building burns to the ground. The condominium association's master policy will pay to rebuild the building, the common elements and even your unit, but it won't ordinarily pay to rebuild what's inside your unit like showers, tubs, cabinets, toilets and sinks. You'll want to look to see what it might cost to replace those items before you obtain your condo coverage.
Then there's liability coverage. Your master policy will cover somebody falling on the sidewalk outside of your unit. It's not going to cover somebody that slips and falls on a wet spot on your kitchen floor. You want liability coverage.
As per the personal property inside of your condo, you'll want to document your possessions in case you'll ever have to file a claim. You can evidence this with photos or a video of the inside of your unit along with any particularly valuable personal property kept in it. For any particularly valuable personal property, look at replacement coverage as opposed to actual cash value should that property be lost, stolen or damaged. Cash value will only pay the value of an item after depreciation.
Don't forget to cover loss of use either. If a fire, tornado or other covered risk severely damages or destroys your unit, you're going to need temporary housing. You'll have to continue to pay your mortgage too. Loss of use coverage will contribute to that additional living expense.
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