If you are considering buying a condo, you may be wondering what type of insurance is needed. There are differences between a condo insurance policies and a homeowner policies. Understanding condo insurance requirements will help you select the right policy to protect your investment and personal property.
Review Master Policy
The first thing you should do is request a copy of the master policy from the condo homeowner’s association. This documentation will show you exactly what their policy covers and what you are responsible for. Typically, the master insurance protects the building and common areas. This might include everything up to and including the walls but not anything within the walls of a unit. Sometimes, there can be special protections included. For instance, if the condo building is within a flood zone, the master insurance may offer enough coverage where you would not need your own flood insurance policy.
Get Your Own Policy
Since condo master insurance policies do not cover the interior of condo units, things like your appliances, light fixtures, cabinetry, flooring, and heating system would not be included. Thus, you do need your own condo insurance policy to protect your unit. These are normally less expensive than homeowners policies because they are limited in scope.
Add Personal Property Coverage
Whether you own a lot of personal items or practice minimalism, your belongings are worth more than you think. Most standard condo insurance policies come with personal property protection, up to a certain limit. You may want to increase that coverage to include art, furniture, jewelry, electronics, instruments or other high-priced items.
Know The Deductibles
All policies have deductibles, which are what you would pay out-of-pocket before your policy coverage kicks in. Selecting a high deductible results in a lower premium, and vice versa. Give some thought to the deductible amount and make sure it doesn’t create a hardship for you
Final Notes On Understanding Condo Insurance Requirements
Owning a condo can be a very rewarding experience and a great alternative to a single family home. Selecting the right condo insurance policy and options is a critical step to protecting your investment. Contact Eagle Trust Insurance for a free quote on a condo policy in Massachusetts.