Living in a condo complex provides you with the amenities that you would expect from a nice apartment complex while receiving the benefits of being a homeowner. The downside is that many risk factors come with owning a condo. Your condo unit can suffer damages from a fire, a storm, or some other unexpected event. You can be held liable if someone is injured in your condo unit. Your personal property can get damaged or stolen. These are just some of the reasons why you need condo insurance.
Any damages that occur in your condo unit is covered by condo insurance. Covered items include interior walls, your personal property, your appliances, and anything of personal value inside your unit. Condo insurance will also reimburse you if you are held responsible for an injury that someone suffers inside your unit. You are not held responsible if you are not involved in any damages or injuries that occur on the condominium’s property outside of your unit. These cases are covered by the condo association’s insurance policy.
Some condo associations have a master “all in” policy that covers plumbing, wiring, carpets, and appliances within your condo unit. Other condo associations have a master “bare walls-in” policy, which does not cover anything within the walls of your unit. You will need to ask your condo association about the type of master policy they use. This will help you to determine how much condo insurance you will need to purchase.
You are not mandated by law to have condo insurance, and your condo association will not require you to purchase a condo policy. If you are looking to purchase a condo unit and need a mortgage, then your lender will most likely require you to have condo insurance as a condition to obtaining a mortgage.
The cost of condo insurance will vary based on the type of coverage you seek and the value of your personal property. Talk to your local insurance agent who can compare the cost of different condo insurance policies and find the one that best fits your needs.