Condo Insurance Basics
Condo insurance is not the same as renters or homeowners insurance. Condo insurance covers the belongings of the policy holder. This coverage is for tenants who live in a condo apartment. There should be insurance coverage on the actual building, but that does not cover items that belong to tenants. Since the condo association should have coverage, you need to determine what type of policy you need.
You might need third party liability. This coverage provides assistance if you ever face a lawsuit because of something that occurs in your unit. For instance, a water pipe could leak or burst and cause damage to other units. If it causes flooding, then you might be responsible for any water damage or mold damage caused.
There is also personal property coverage. This is for items in the condo such as furniture and electronics. You need to estimate the value of your belongings. That will allow you to get the right amount of coverage. Most insurance companies will reimburse you for replacement cost to replace damaged or stolen items.
Additional living expenses may also be available if the condo becomes unlivable. This will cover your living expenses while it’s being repaired. And loss assessment works in conjunction with the condo building policy. If a lawsuit occurs against the building but it affects you, then loss assessment will assist.