The Need to Know Guide for Buying Condo Insurance

It isn’t until it’s too late that most people find out that their condominium association’s blanket insurance policy is no good for them.  Condo associations generally have enough coverage to protect the assets of the building and that’s it.  They generally do not include your personal belongings or your yard/garden space (if you have this).  Get a copy of their policy and go over it with a professional and then get your own coverage to fill in the gaps that are likely present in the blanket coverage.

The Essentials of Condo Insurance

Again, the condominium association policy is probably only going to cover structural things, like the buildings, common grounds (lobby, pool area), and (possibly) any furniture and décor contained within them.  Before purchasing a condo it is wise to ask the association about the insurance coverage they already have and what it covers and if it carries any personal liability outside the common areas, like within your condo unit.  The odds are going to be in favor of the association’s insurance covering only publicly shared areas and anything within your unit will have to be covered, separately, by you.

Liability and Personal Property Insurance

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Any insurance policy you buy should have coverage for all of your belongings inside the condo.  Take stock of everything you own, including the kitchen sink.  OK, maybe not the sink, but your appliances, furniture, clothes, jewelry, and so on.  As long as your belongings are documented with your insurer you should be covered in the event they need to be replaced – up to a point.  Usually the policy will cover fire damage, but you should check for water damage coverage, too.

Water damage from burst pipes, backed up drainage, leaky roofs, and the like can cause just as much damage as a fire and they are actually far more likely to happen than a fire.  As such, insurers tend to not include coverage for this in a basic policy.  You also need to see if the association’s insurance covers property damages for water in your unit, or if you’re responsible for it.  You may need to get coverage for both replacement of belongings and structural repair. 

In addition to not covering water damage, a lot of condo association policies don’t cover earthquakes, hurricanes, and other natural disasters.  Frankly, a lot of association policies, when it comes to you and your own protection, aren’t worth the paper they’re printed on.  Be sure to find out what the association’s insurance covers and then protect yourself accordingly.