Condominium Insurance is meant to provide pretty much the same protections as a traditional homeowner’s insurance policy but rather for those who own a condominium or apartment as opposed to a stand-alone single-family home. Condo insurance may also be often utilized for attached townhouses and other multi-family residential structures.
Condominium Insurance is here to provide protection for any condominium owner from damages that are somehow caused to the home. This type of insurance is normally required by lenders for those with a mortgage. Sometimes condominium insurance is included with the cost of this loan. It is important for the condo owner to look into this with their mortgage company before purchasing additional coverage.
Condominium insurance differs from regular homeowners; in that it covers the property within the walls of the condo and between the floor and ceiling. Any owner Improvements, like granite countertops and newly installed interior walls, are all covered with a good condominium insurance policy. Everything that is outside of the exterior walls will usually be only covered by the building’s HOA insurance policy.
An entry level condominium insurance policy starts with basic coverage that protects the interior of the property from damage, like water leaks, vandalism, and theft. The policy will usually have a cap on the items that can fall under coverage along with a cap on the cost of each item claimed in the agreement. For example, if there might be a total cap of $100,000 and a cap of $10,000 per item. There are additional kinds of coverage available, like earthquake and flood coverage, which will likely be necessary to obtain separately.
Condominium insurance pays out should your property be damaged or stolen. There are also other benefits that many of these insurance policies will have. For example, coverage obtained can pay for lodging while your condo home is under repair due to a covered loss.
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