As a condominium owner, it is important to understand what is covered by the insurance policy maintained by your condo owner association. There are often gaps in coverage that need to be covered by an individual policy in case of unexpected damage or personal liability claims.
What Does Condo Insurance Cover?
Condo insurance typically includes a few standard coverage to help protect you, your condo unit and your belongings. Here’s a look at how these coverage’s work. Keep in mind that each coverage comes with a limit, which is the maximum amount you can be reimbursed for a covered claim. You will also need to pay a deductible before your coverage kicks in.
Personal Liability Coverage
If someone is accidentally injured while visiting your condo and you are at fault, this coverage may help you pay for related legal expenses or your guest’s resulting medical bills.
Medical Coverage
If a guest is injured at your home, guest medical coverage may help pay for related medical expenses, even if you are not at fault.
Building Property Protection
This type of coverage typically helps pay for repairs to the walls of your condo unit and its interior, which could include items such as built-in bookcases and fixtures, if damage is caused by a covered peril. Most condo owners don’t realize they own items like flooring, wood trim, cabinets, inner walls, countertops, and fixtures. These items are usually not covered under the condo association’s insurance, so it’s up to you to have protection
Personal Property Coverage
Belongings such as electronics, appliances, furniture and clothing are typically included under personal property coverage. If they are stolen or damaged in a covered claim, this coverage may help pay to repair or replace them. Condo owners can typically choose from different types of personal property coverage, which determine how much your policy will reimburse you after a covered loss. They include actual cash value, which typically pays you for the depreciated value of your damaged belongings and replacement cost coverage, which does not take depreciation into account. This coverage helps reimburse you for the difference between the actual cash value of your belongings and what you paid to repair or replace them.
Loss Assessment Coverage
If your condo association issues a special assessment, in some cases this coverage may help cover your share. For example, if a fire damages a common area, this coverage may help pay for your part of the bill. In Florida there is $2000 mandatory assessment coverage included with your policy.