Making the decision to buy a condo can be an exciting time in your life, especially if you feel that a condo is the right thing for you. Before you close the sale, though, you’ll want to think carefully about a few “daily life details” that have nothing to do with furniture arrangements and meeting the neighbors. Can you guess it? That’s right: insurance. You’ll want to think about these 7 things before you close the sale.
1. What do I need to insure in my condo?
Despite how it may feel, a condo is not an apartment! You will need to insure things specific to your unit that the condo association’s policy doesn’t cover. For example, many have to insure things like countertops, fixtures, appliances, flooring, cabinets, and any home improvements that they make within their unit.
2. What personal property coverage should I have?
Similar to living in a rented space, you will need to have coverage for your personal items within the condo, as your condo association won’t cover those. These are things like your furniture, your clothing, your electronics, jewelry, and other things that are yours. Where a homeowner’s policy would cover these, a condo policy is very different. Don't forget to consider umbrella policy for when the condo coverage isn't enough.
3. Do I need flood insurance?
Depending on where you live and what risks you have to deal with, you may need flood insurance. If you live in the Gulf Coast, it is highly likely. This would cover flood-related damage to your insured items that we’ve talked about above. You’ll also want to know what your condo association’s policy covers specific to the building and the unit.
4. What does the association’s policy cover?
Speaking of the policy from your condo association, you’ll need to get a feel for what is and is not covered in the policy that they hold. You have a right to that information since you are buying space within their building. You will want ot make sure that you are comfortable with their coverage and other details before closing on your condo.
5. Will I be responsible for the association’s deductible?
Just like your policy, your condo’s association will have a deductible. At times, you may need to pay the deductible, so you will want to understand when those circumstances are, and what the deductible is!
6. Where do I go if I can’t live in my condo after an insured loss?
After a fire, flood, etc., you may need alternative housing until your condo gets repaired. Depending on what happened resulting in you being “unhoused,” the condo’s policy may cover it, or yours may cover it. Make sure you know the ins and outs of it!
7. What is the competition offering?
A lot of people just look at the condo insurance premiums and use that as their only factor for determining what policy to choose among the competition. But you’ll want to factor in what is covered and the deductibles, too!
The right answers to these questions can help you feel more confident that you’re protecting both your investment and your living space. Condo insurance can be a little different from traditional homeowners insurance, and every association and policy is different, so it’s important to understand exactly what you’re responsible for before you close.
Have questions about condo insurance or want to compare coverage options? Reach out to us for help or a free, no-obligation quote. We can help you understand what coverage may make sense for your new condo and make sure there aren’t any surprises after you move in.
Still deciding whether condo ownership is right for you? Check out our blog, “The Pros and Cons of Owning a Condo,” for a closer look at some of the benefits and potential drawbacks to consider before you buy.