At the danger of stating the obvious, a condo is very dissimilar to a house. However, both types of property ought to be insured. Whereas it might look counterintuitive that condo insurance is more intricate than homeowner's policies, since the previous one is smaller, it is actually quite true. Between trading with the building association, the building's master policy, and other residents, it is not as clear-cut as a simple homeowner's policy. Read these tips to keep in mind when buying for the best condo insurance.

 

1.       Discover What All Master Policy Covers

 

When you give your condo association dues, you are throwing your cash in with all the other owners to jointly ensure the common areas of the building. This is called a master policy. Prior to you sign on to a personal policy for your own house, look into the terms of the master policy and find out exactly what you are paying for so that you do not have to pay for double coverage unnecessarily. There are two types of master policies: bare walls in or all-in.  The bare walls in policies cover all to do with the building's real structure, but nothing inside the unit itself. All-in policies will cover definite fixtures inside the unit, such as flooring or lighting. Bare walls in master policy owners will necessitate a higher rate of individual insurance than those who hold an all-in master policy.

 

2.       Content vs. Structure Policies

 

When you decide your condo insurance policy, you should always make sure that your policy covers content and structure, not one or the other. In the event of a fire, you not just want to be able to reinstate your rugs but also want to be able to reinstate your kitchen cabinetry. Make sure you have the best condo insurance policy that covers both.

 

3.       Know the distinction between Cash-Value and Replacement-Cost Coverage

 

Cash-value coverage causes depreciation into its payout amounts. For example, if you have to replace a mattress five years after purchasing it, the cash-value policy would cause in five years of depreciation when figuring out how much funds you are owed. Replacement-cost coverage does not cause in depreciation. You would get all the money you will require to replace your mattress with a new model now, resulting in a higher payout.

 

4.       Natural Disaster Coverage

 

Although a master policy may cover flood damage to the actual building, it will not help you in replacing your belongings damaged by a flood. Water backup coverage is an additional area where residents should pay for individual policies in the case of a drain overflow in the building.

 

5.       Determine if Liability Coverage is needed

 

Does your insurance policy cover liability? When thinking about this kind of coverage, it is best to err on the safer side and get at least liability coverage in case you or your family member is the reason of an accidental misfortune or your dog bites, someone.

 

It's not at all a bad idea to buy additional coverage beyond the least amount the condo's master policy covers. You will have to think about your particular needs and lifestyle when making a decision to choose the best condo insurance policy, but the peace of mind will be worth it in the long run.

 

About The Author

 

Dino Pharrell is the expert and well know professional for Landlord Insurance. His exceptional expertise, professionalism and unmatched client service, helps the people to keep a close eye on their valuable investments that his customer has accumulated over the years. He has writte

Views: 336 views    Report this Article
Comments (0)