Condo Insurance: What is it?

Condo Insurance: What is it?

The housing market has shifted over the past decade to one that comprises in large part of renting rather than ownership. This has caused policies for renters or condo insurance to become more popular. While renters and condo insurance are similar, they are different enough to warrant separate articles, the former of which will be focusing on condo insurance.

Condo insurance is purchased when you own a condo unit that is part of a condominium complex. The complex has a master policy that insures the outside of the building and the common areas, but the occupants of the condo unit must have personalized condo insurance to cover a variety of risks that the master policy does not cover.

There are five main components within a condo policy are as follows:

  1. Building
    • Inside of the condo as most master policies cover to the dry wall.
  2. Contents coverage
    • This covers personal belongs such as clothes, furniture, and electronics. However, there are sub limits on certain types of belongings.
  3. Loss of Use
    • This part of the policy encompasses events that make your condo uninhabitable such as fire damage, windstorms, or water damage. Earthquakes and floods are not covered by this and are separate policies altogether.
  4. Liability
    • This covers personal liability in the event of a law suit or for something you are negligent for when someone is hurt at your condo.
  5. Medical
    • This part of the policy covers medical costs when someone gets hurt on the premises and needs medical attention.

Knowing the basics of condo insurance will help you better understand what is and is not covered for your own condo unit, helping you resolve any problems with greater confidence that might arise in the future. If you have more questions about condo insurance or about your condo policy, contact your personal agent today at Hardy insurance.