Choosing the Right Condo Insurance 

Without many of the maintenance headaches that come with owning a separate house,purchasing a condominium can be a wise way to begin the home-buying process. 

Some elements of the complex are insured by the homeowner association or HOA, but certain areas of each homeowner's property and possessions require their individual insurance policies.

The functioning of condo insurance is explained as follows:

Group insurance: Condo association insurance usually covers common areas, such as a pool,lawn and building exteriors.

This insurance is called the “master policy” and doesn’t include what’s inside your condo unit —such as a break-in, water damage to your kitchen walls, or someone slipping on your wet bathroom floor.

Condo unit insurance: Everything inside the walls, such as the plumbing and electrical wiring, is covered by your individual insurance policy, though some master policies may cover from the paint on the inside of your unit to the outside walls.

An individual homeowner’s insurance policy will also cover your belongings that you keep inside your condo, along with any fixtures or improvements you make to your unit.

When valuing your possessions, consider the replacement cost in today’s dollars for new items,not what they originally cost. Some policies only reimburse for actual cash value, which is the depreciated value, and not the total replacement costs.

Insurance coverage for personal belongings and the physical building typically range from$25,000 to $100,000, with premiums at $400 to $600 per year. Owning artwork or other collectibles could require additional coverage.

Liability coverage included in condo insurance will typically cost $20 a year for $300,000 in liability coverage.

Loss-assessment insurance: This covers insurance expenses not covered by the condo association, or in excess of the group coverage. You may need it if the condo association insurance doesn’t cover a major repair and the HOA doesn’t have enough money to pay for therepair. Instead of paying extra for the fixes, your loss-assessment coverage would cover you.

?Loss of use: This type of insurance pays for a place for you to stay if your unit is totaled or severely damaged by a tornado or some other disaster. Coverage may be limited to a dollar value or your actual costs for a specified time.

When determining how much insurance you need for your condo, start with your condo associations’ master policy and then fill in the holes from there. This real estate information will help ensure your investment and your belongings are well protected.

Like this update? As your local real estate professional, I can provide more great tips like this and answer any real estate information questions you may have. Contact me today!

JUAN MESTRE 

REALTOR ASSOCIATE 

RAISING THE BAR FOR REAL ESTATE SERVICES 

CONSIDER: Since I'm not a lawyer but your neighbor Realtor Associate, you should consult an attorney and your CPA before making any decisions.

 If you wish to find your Home or to start your journey towards Home Ownership, Let’s start working together reach me at 305-776-5677 or register at www.juanmestre.com or email mestre.j@ewm.com. 

Sourced and digested from several locations including but not limited to: RisMedia for BHHS.com/blog, EWM Realty & my knowledge