Condo owners need insurance to help them cover the cost of property damage and expenses related to liabilities. The owner must evaluate policies and determine what coverage levels are right for their condo. Examining risks helps the owner find all the policies they need to protect their property fully.
Fulfilling Obligations to Their Lender
Fulfilling obligations to the lender requires the buyer to purchase condo insurance to protect the property. The buyer must purchase and maintain the insurance throughout the duration of their mortgage contract. Evidence of their policy is required before the property closing. The condo owner must pay the homeowner’s association community dues each year to cover the cost of their master condo insurance policy. Both policies must remain active throughout the duration of the mortgage contract. The homeowner’s association requires the master policy for as long as the property owner lives in the community. Condo owners can learn more about condo insurance from Garrity by contacting the insurer now.
Why Do You Need Two Policies?
For condos, there are two separate policies that provide coverage for the property. First, the master policy covers the communal areas of the community and specific features of the property. It covers the exterior of the property, roofing, wiring, plumbing, and electrical installations. The individual condo insurance covers the interior of the property including any items the owner brings into the property. It includes all their personal belongings including furnishings, appliances, electronics, and clothing. Any liabilities the owner could face are also covered. This includes accidents inside the property, dog attacks, and any situations where a visitor could become injured.
Why Would You Need Flood Coverage?
Flood coverage is an additional policy that lenders require if the property is situated inside a designated flood zone. If a body of water is near the property, it is more than likely in a designated flood zone. The flood coverage provides additional coverage for property damage caused by a flood. If the property is in a hurricane zone, the property owner needs hurricane coverage, too. Any area near the ocean is in a hurricane zone, and the owner might need more coverage to protect their home more fully.
How Can An Umbrella Policy Help?
An umbrella policy covers liabilities that aren’t covered by the other policies. Serious liabilities can lead to a lawsuit if the property owner is liable. The umbrella policy offers further assistance if the property owner loses the lawsuit and must pay the victim for damages. If a liability emerges, the property owner files a claim through their condo insurance. If the coverage doesn’t provide enough funds to cover medical expenses or damages, the umbrella coverage provides financial help for the remaining balance.
Condo owners purchase insurance to protect their property, and they must acquire specific coverage if their home is financed by a mortgage. Individual condo insurance is required to protect the interior of the property. A master policy is provided through the homeowner’s association and condo community. It provides protection for the exterior of the property and vital installations such as the wiring. Reviewing insurance coverage helps the owner find the best policies to protect their home.