Property investments have a lot of payoffs. Condos are an attractive choice because they don’t require as much maintenance as a detached home. Many condo owners chose their property because the HOA institutes a master policy that helps cover repairs that could be costly if you owned a detached property or townhouse. It’s not uncommon for condo owners to ask themselves whether or not condo insurance is worth it. Before saying no to having your own plan, ask yourself these questions to ensure you have the proper coverage.
What does your master policy say?
Master policies address the specifics about what is being insured for common areas. As a condo owner, you own the unit and share common spaces. Typically, the exterior, stairs, walkways, and amenities like a pool or basketball court are insured under the master policy. It should cover damages and liability. But is it enough?
As a unit owner, you take out condo insurance to protect you financially if something were to go wrong. As the holder of the policy, you can choose how you want to structure the deductible and liability. After reviewing the master policy, you might want to consider whether or not their limits make you feel comfortable. If not, you might want to consider taking out more on your own.
Which master policy do you have?
Knowing what is enough is up to you. It’s wise to read the document thoroughly. You don’t want any coverage surprises. Two kinds of master policies exist bare walls-in and all-in. All-in will likely need a little less coverage because the policy will assist with damages to new installations, floors, ceilings, and appliances within the unit.
Bare walls-in will cover the exterior all the way to the interior of the building but doesn’t extend to your unit. Anything from countertops, to light fixtures and appliances, are not covered under this kind of policy. Condo units with a bare walls-in will require the most coverage from their condo insurance provider. If you are looking at a bare walls-in you will definitely benefit from condo insurance.
Have you considered liability insurance?
Many condo owners are concerned most about their property investment. It’s fair considering the amount of money they are spending. However, condo insurance doesn’t just cover damages — you get liability too. Liability is essential when your unit is shared. If anyone was to get injured while visiting your condo, they could try to file a personal claim against you. Liability insurance could help in this instance. This portion of the policy is dedicated to covering medical expenses and potentially any legal fees.
Are your personal belongings worth covering?
Master policies sometimes extend to installation units. They will never cover personal property. What is personal property in the eyes of condo insurance? Anything that you own. Furniture, electronics, jewelry, art, and clothing. If you consider these items to be valuable, condo insurance is worth the investment. Some plans will cover the replacement of items stolen or damaged. You can talk to your insurance agent to learn more about the details. Some value limits are set per item. Make sure you get coverage for the personal property value.
Do you have protection against flooding or wind damage?
You’ll want to check your master policy, but it’s possible that it doesn’t cover if your condo is damaged from hail, wind, or rain. All of these can be costly repairs. Condo insurance can help. Flooding alone can happen a couple of different ways. Depending on the cause, it might not fall under the master policy plan. Flooding from rain or a burst pipe might not be in the underwriting. And, you need to consider where the burst pipe is coming from — is it yours or neighbors? Did it do damage to the structure of your unit or personal property?
Condo Insurance Nashville
Get the coverage you need by speaking to a condo insurance agent. Royce Williams has been helping residents in Middle Tennessee build a comprehensive plan that addresses all of their needs. Contact our offices today to get a free quote.
