Insurance, the word alone strikes fear into the hearts of consumers. Like many fears that overwhelm us, an increase in knowledge usually will mitigate the intensity and empower the buyer. Condo Insurance is at its most basic definition, coverage that protects damage to the are of the condo that you own. Generally condominium associations cover most of the grounds using the dues you pay each month to live there. For this reason it is important to know what your particular complex covers and what you are responsible for yourself. Condominiums, which are basically apartments that you own, usually only require you to cover the part of the condominium that belongs to you.The main component of condo insurance is called the Master Policy. There are two sub-categories when it comes to condo insurance.
Bare Walls In:
This coverage offers the condo owner insurance on everything from the exterior of the condo inward. It does not however include fixtures and installations, In other words, bathroom fixtures, kitchen countertops and flooring. In order to maximize the coverage in your condo a better option might be opt for the more extensive coverage called the all-in insurance policy.
All-In Insurance Policy:
The main difference between these two types of master condo insurance policies is the extended coverage. With the All-In policy, your fixtures, floors, counter tops are all covered in case of damage.
How Much Coverage is Needed?
When the insured has an understanding of what is his/her responsibility and what does the condo cover, then it is time to consider just how much coverage is needed. As a rule of thumb, an easy way to decide on coverage amount is to cover about half of the market price of the condos interior structures.
Having completed the estimate it is now time to decide on the amount of coverage to purchase. An important choice at this time is to decide whether to cover your condo for replacement cost or cash value.
Cash value: This will offer protection of your condo for the amount of monetary worth the items had at the time of loss. In other words it’s depleted value.
Replacement cost: Just as it sounds, this insurance would cover the cost the owner would incur if they were to replace the lost items at the going rate in today’s market.
Examples of areas to be insured:
*Structural and Content Coverage:
*Cabinets and countertops
*Art and other collections
Before purchasing your condo insurance make sure you have fully informed about what your part of the deductible would be in case of damage in the condominium property itself. Though your dues will cover the actual policy for areas beyond your own space, should there be a disaster of some sort, the actual insurance will cover the damage but the condo owners are usually responsible for equal share of the deductible.
The components of condo insurance are easy to understand once you have the basic knowledge of your personal space and that of the condominium property as a whole. Equipped with this knowledge you can enjoy your condo knowing that you are well protected if it should ever become necessary.