Condominium owners face the same risks as every other type homeowner, therefore, the proper amount of insurance coverage is essential in protecting their assets. Although most condominium associations are required to carry hazard insurance protecting the dwelling structure, buildings and common areas, the unit owner is 100% responsible for everything on the other side of their front door. Condominium associations insurance does not cover the unit owner’s personal property or damage occuring inside the unit.
There are generally four major components standard in every condominium policy:
1. Personal Property Protection – providing loss or damage protection
2. Loss of Use Coverage – covering most living expense in the event of damage or displacement
3. Personal Liability Protection – protecting against law suits and legal expenses
4. Third Party Medical Expenses – covering expenses resulting from injuries to others on your property
Personal Property Coverage –
Personal property protection is the fundamental core coverage in a condominium policy. Condominium insurance protects the policyholder’s personal property, furnishings, valuables and assets against a braod range of perils including accident or disaster. Personl property governs everything inside the condominium unit including property belonging to dependents. Without this type of coverage the owner is vulnerable to loss. This protection offers the owner peace of mind for the future.
Some of the perils commonly covered include, but are not limited to:
– fire, smoke, explosion, volcanic eruption
– theft, vandalism, malicious destruction, riots, civil disturbances
– aircraft, ground vehicle, falling objects
– hail, windstorms, lightening, sleet, snow, ice
– water damage from utilities, electrical surges
Loss of Use Coverage –
Condominium policies provide a type of coverage more commonly known as loss-of-use coverage. This coverage provides living expenses for the policyholder if temporary housing is needed should their condominium become uninhabitable for any period of time. It covers the policyholder’s expenses while the dwelling is being repaired even to include some property improvements.
Personal Liability Protection –
Personal liability insurance protects the owner against a potential law suit if an individual is injured on their property. It also shields the policyholder against pain and suffering damages and covers most legal expenses sought by an injured party. This coverage protects the owner and their dependents against damages to third parties and their personal property as well.
Third Party Medical Expenses –
This type of coverage safeguards against the owner having to pay an individual’s medical expenses out of his or her own pocket if an individual is injured on their property. All policies are subject to limitations, therefore, it’s always best to consult customer service or an agent to determine what limits, terms and coverage best suit an owner’s individual needs.
Condominium insurance is essential in order to plan and protect against future loss or damage. Sufficient coverage is the only way a condominium owner can effectively safeguard their assets for the future. Condominium policies are the protective blanket providing the assurance and protection every property owner needs.