There are a number of different types of insurance policies out there, and one of them is specifically catered towards condo owners. Condo insurance is a kind of homeowner’s insurance that is made in order to meet the needs of those who own a condo. A condo is a great investment but in order to protect that investment, just like you would if you owned a house, insurance is certainly a necessity. This insurance is specifically for those who own a condo, and if you are one of them, it’s important that you understand how this type of insurance works.
In some cases, your condo, including the common areas, will be covered with a policy provided by the homeowner’s association known as a master policy. However, you should know that this does not mean your personal items are covered nor does it mean that everything in your condo is covered. This is where condo insurance will be necessary. By buying a separate policy, you can be sure that your home, as well as everything in it, is protected. Should you have to make a claim, for instance you have a fire in the kitchen, your policy will pay for those repairs and replace items that were damaged.
There are a number of different types of coverage available for your condo. The typical coverage will cover things like fire, lightning, vandalism, theft and other things. However, you may want to take out more coverage on belongings that will not be covered. For instance, if you have artwork or jewelry, there are typically coverage limits on policies that mean you will only get paid a certain amount should you need to make a claim. If your jewelry, for example, is worth more than that, it is a loss for you.
As you can see, there are a number of reasons why condominium insurance is necessary if you are the owner of a unit. Though you may be partially covered with a master policy set up by the homeowners association, your own policy, as you can see, brings many benefits.