When purchasing a condo, shoppers may not realize that there is a special type of insurance for their new residence. Condo insurance offers coverage somewhere in between a home insurance policy and a renter’s insurance policy. There is a limited amount of coverage for the physical structure of the condo, and coverage for the personal property inside the condo. In most cases, a master policy will cover the physical structure for all of the attached condos, and that will provide coverage for the building itself.
Most of the time, those who are purchasing this policy can choose how much coverage they want for their things and for the physical building. Most of the time, the condo unit owner will have to cover the paint in or the walls in on their own policy. Speak with an agent about exactly how much coverage to choose on a specific condo unit. Also, these policies generally come with some liability coverage. This provides coverage for many lawsuits that could come back to the condo unit owner.
Often, it is a good idea to take stock of all of the items in the home, and add together their value. An agent can provide a good recommendation for personal property coverage, but ultimately each person knows about how much stuff they own. Those who have high value items such as jewelry or furs should look at how much coverage they have for these specific items. If they want to get specific coverage for these items, they should talk with their agent about adding these items as a rider to their condo policy.
Ultimately, a condo policy is often much cheaper than a full homeowner’s policy, and it provides a lot of flexibility as to what is covered.