Sherzer Insurance Blog
Many significant cities worldwide face a shortage of residential space as millions of people flock to these urban areas to live and work. As a result, you have witnessed the growing popularity of condominiums among young working professionals. And, most of the time, residential condominiums are near their place of work.
Condo dwellers are a unique set of homeowners. In contrast with traditional homeowners, condo owners only own their units. They do not have ownership over the building or even the land which it stands on. Hence, they need an insurance policy that is specifically designed for condo dwellers.
What is Condo Insurance?
Condo insurance is the type of insurance policy that is tailored to fit the needs of people owning condominium units. The policy, also called the HO-6 policy, offers financial coverage to condo dwellers and their condo units.
Like standard home insurance, condo insurance can provide coverage against fire, smoke, wind, hail, theft, vandalism, burst pipe, and lightning. And similar to home insurance, standard condo insurance does not cover damages caused by floods and earthquakes. It would be best if you got separate policies to get flood and earthquake coverages.
Here are two coverage types of condo insurance that are vital for condo dwellers:
Personal Property Coverage
Like home insurance, the condo insurance policy provides personal property coverage to condo owners. If your clothing, furniture, and other belongings were damaged by a covered disaster or got stolen by someone, this insurance policy can shoulder the expenses in replacing those items.
For example, the hurricane broke your unit’s windows. As a result, your furniture was soaked with rainwater and got damaged. Your property coverage can pay for the expenses of replacing your furniture.
In most cases, 50% of the dwelling coverage is the set limit for property claims. Thus, valuable items such as artwork and jewelry can be covered but only within a specific limit. So, if you have expensive items, it would be best to get additional coverage.
Building Property Coverage
Similar to home insurance, condo insurance also provides dwelling coverage. This coverage, also known as building property coverage, offers financial protection to the structure of your condo units, such as the interior walls, floor, tiling, sink, and cabinetry. In other words, it can cover the entire interior structure of your unit.
For example, a storm broke your condo unit’s windows. Your building property coverage can shoulder the costs of replacing your damaged windows.
However, it is advisable to ask your condominium’s homeowners association (HOA) about the type of master policy they have before getting your condo policy. If your HOA has an all-in coverage, your HOA’s insurance policy already covers built-in items in your unit such as cabinets, appliances, and fixtures. Hence, you might no longer need to get building property coverage for your unit.
But if your HOA’s master policy is bare walls-in coverage, then you need to obtain dwelling coverage for your unit. Bare walls-in coverage only covers the structure of the condominium, excluding built-in items.
Condo owners are also vulnerable to the perils that traditional homeowners face. Thus, you need to get condo insurance to protect yourself, your belongings, and your condo unit. Your condo unit provides shelter for your family shelter, so it is also necessary to protect your home.
At Sherzer Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (239) 673-9301. You can also request a free quote by CLICKING HERE.