If you have recently purchased a condo, your next step is to look at getting condo insurance. This is fairly straightforward, but you may want to keep a few things in mind that can help you get the best rates, while enjoying the most comprehensive coverage possible.
The first question that you need to ask is what is covered under the condominium corporation insurance policy, and what will need to be covered under your personal policy. Generally, only items owned by the condominium corporation will be covered by their insurance policy. This includes stairwells, elevators, items in the lobby, hallways and external fixtures such as roofing.
Another thing to ask is what your condominium insurance covers. You need to know that upgrades to your unit, such as improved flooring, are not normally covered by the corporation policy. Like a homeowners policy, you may also need to make special arrangements to include luxury vehicles or items stored off the premises.
You will need to ask your corporation some questions as well, in order to find out what your unit holder responsibilities are. This will enable you to select a condo insurance policy that will mesh well and allow you to meet your responsibilities should your unit or building become damaged. You will also need to ask the corporation what the minimum amount of coverage required is. This is part of your obligations as a unit holder, as some buildings may require you to have higher coverage than others. Because a condo corporation has the right to pass by-laws that govern its unit holders, you are forced to abide by any decisions regarding your insurance policy and coverage that the corporation has set out.
One aspect to condo insurance that differs from homeowners insurance is the distance from the residence that injury claims are covered. In homes, this should include the property, but in condo insurance this is often a much shorter distance. Condo insurance will cover personal injury that occurs within one hundred and fifty feet of the door. As you can see, this is one area where there is a significant difference between condo insurance and homeowners insurance.
Many insurance companies will drop their rates if you are also insuring a vehicle or other items from them. A bundled rate can be good, but don’t worry if you are not insuring anything else. You may still be able to get a deal if you go to the company which is also insuring the condo corporation. They may be able to give you a better group rate than a stand-alone policy through another company.
There are so many differences between condo insurance and homeowners insurance that most important questions should be to your insurance company or agent. How much experience has their insurance company had covering condos? Are they simply giving you a modified homeowner’s policy, or are you getting one specifically designed to cover the unique living situation of a condo? The answer may tell you you need to look elsewhere for coverage.
By shopping smart when you purchase condo insurance, you can find a great deal that makes sure that you and your belongings are covered in the event of a fire or other damage.
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