A condo is an excellent housing option that provides you with many benefits that you can enjoy over the years. After spending a considerable amount of time, energy and money investing in the perfect condo to live in, the last thing you want is to have your property damaged in some way. However, fires, floods and other issues can and do impact condo owners. Condo insurance may be required by your mortgage lender, and it also can provide you with financial protection that prevents calamitous results if your property is damaged.
Condos are unique from other types of homes, and this is because the owner only owns the inside of the structure. The condo association typically owns the exterior of the unit. With this in mind, special coverage is necessary to help the owner recoup money after a loss impacts the interior of the structure.
There are various types of coverage available, but most provide you with the ability to pay for repairs needed for the interior of the building. Some will also pay to replace personal contents, such as furniture and electronics, that were lost in the damaging event. If you are displaced from the condo for a period of time, some condo insurance policies will also pay the cost for you to stay in a hotel while your condo is being repaired. In addition, most condo policies include a liability component. There is always a possibility of someone else getting injured on your property, and liability coverage can pay for legal expenses, medical bills and more that you may be faced with as a result of a liability issue.
In the event you need to file a claim, you will be responsible for paying the deductible. The deductible may be as high as one to two percent of the property value in many cases. With this in mind, you should keep an amount equal to this available in your savings account at all times.
Condo coverage is most often required by your mortgage company. With its many benefits, it is not a coverage you want to go without. Take time to review your current policy today to ensure that it meets all of your needs.