When you own a Condo, you must take steps to protect the investment you have made. Just like you insure your home, you need to purchase Condo Insurance to safeguard your condo. However, there are a number of differences in home-owners insurance and condo insurance that make this purchase a bit different, as well. Some tips to help you decide the amount of Condo Insurance to purchase are highlighted here.
See what the HOA’s Policy will Cover
When you purchase a condominium, the HOA, or Home-owners Association, will collect a monthly due that will provide insurance coverage for the exterior of the condo and the common areas. In order to discover what is specifically covered in this you need to review the by-laws of the association, as well as the HOA’s master insurance policy.
You will find two different types of insurance coverage offered by the HOA’s insurance policy:
- Bare walls in: Coverage that handles the building’s exterior structure. This means that you would need to purchase insurance for all of the contents inside of your home.
- All in: This policy will protect the entire exterior and the structural contents on the interior. The only thing it will not cover is your personal assets.
Estimate Replacement Costs
After you have figured out what the master insurance policy of the HOA covers, then you need to determine how much your personal belongings are worth. You need to ensure that the policy you purchase covers everything that isn’t included with the HOA’s actual master policy. When you have an HOA that features the “all-in” insurance policy, then it will usually not include the improvements that you decide to put into your unit. In this case, you will have to purchase extra insurance for covering these things.
Getting coverage for your personal assets will ensure that you are not completely without if a disaster strikes. You will have to put a value on your belongings and then contact an insurance provider to help you purchase coverage. Doing this will ensure you get all the coverage that you need and that you will be able to replace all of your belongings if they become damaged or destroyed.
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