The Purpose of Condo Insurance
Condo insurance is for people who own a unit inside of a condo. And when you purchase a condo with a mortgage, your lender will likely require insurance coverage. Even if they don’t, you should still have this insurance. You might experience extreme financial losses if your condo is damaged, so it makes sense to get coverage to help pay the expenses. And the owner of the building isn’t responsible for your unit, so that means it’s all on you.
A typical condo insurance policy covers property coverage. That pays for repairs or replacements inside of your area. Remember that you own the interior portion of the unit, and the exterior isn’t your responsibility. Personal property coverage is included as well. This provides coverage for personal items such as clothing, appliances, electronics and furniture. Most polices also include liability coverage. That’s for when people are injured on your property and you are liable for related expenses.
In most cases, you can purchase additional coverage to go along with your condo insurance. Events like earthquakes, floods and mold can be covered if added as an option. Just keep in mind that you’ll pay a deductible and a premium for the policy. Also, make sure to choose a policy amount that will provide enough funds to cover all or most of your belongings.