There is no shame in admitting that it’s difficult to understand the good and bad about insurance. One of the most complicated areas of insurance is your condo association’s insurance! Do you really understand what it is, how it works, and where its limitations are? Take a look below, and learn what there is to know about this very important kind of insurance.
What is Condo Association Insurance
Condo association insurance is essentially a policy that covers every unit in the condo building -- sort of. This policy relates specifically to the building and the units, but only in the sense of the actual physical structure.
What it covers
In most cases, your condo association’s insurance policy is going to cover all public areas and structural protection of private areas. So, common spaces like the lobby, gyms, and hallways are covered for damage and liability. Your unit’s structure would also be covered under this policy.
As with many things in the insurance world, there is no “one size fits all” for this kind of policy. You will want to show this policy to your insurance agent and have them walk you through what it covers and what it doesn’t, specific to your building and condo.
What it does not cover
It sounds as if everything is taken care of with this policy, but that kind of protection is just the tip of the iceberg. Let’s take a close look at the areas that are not covered in most condo association insurance.
Liability in your unit
You will need traditional condo insurance to cover liability in your unit itself. The hallways and lobby is protected by the general policy, but this policy doesn’t extend to inside your unit! From medical expenses to possible legal costs, this is something to think about and protect against.
Any custom upgrades or changes
From painting to putting down new flooring to changing out the cabinets, any custom changes you make to your condo aren’t going to be covered under the structural/base protection included in the condo association policy. This doesn’t mean that you can’t make changes, of course, but you’ll want to ensure your policy protects them from damage.
Out-of-home living expenses
One of the biggest oversights with a general policy is that condo owners have no protection in case of having to relocate temporarily due to structural damage, fire, flooding, and more. The general policy is not required to cover this for condo owners, so you will need to pay for out-of-home expenses on your own, unless you have a policy in place that covers that.
Now that you know a bit more about what you can expect with your condo association’s policy, it’s time to have a chat with your local Harbour Insurance agent and get a feel for what kind of policy you should put in place -- or modify -- so that you are properly protected in all of the most important ways. After all, finding out about the association’s coverage gaps after the fact is not the way you will want to go!
Let's chat, contact us at (281) 520-4090 or get your free condo quote here.