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Unlike traditional homeowners, customers who live in condominiums do not have sole ownership over the building they reside in or the land surrounding it. Condo dwellers are typically only responsible for insuring their owned portion of the building, thus their coverage needs are unique to their situation. When customers are seeking out insurance from habitational insurance carriers, they usually have a number of questions. Here are some of the most common questions asked by customers about condo insurance:
1. Do I have to buy condo insurance?
Typically, both condo associations and lenders have requirements regarding coverage for residents, so the short answer is yes. Condo associations will often require a minimum amount of liability coverage, to protect their assets and help reduce their involvement in liability incidents between residents, among other reasons. Lenders want to protect their investment, and may require condo owners to have a minimum amount of coverage in order to be sufficient.
2. What exactly does my condo insurance cover?
A condo insurance policy is designed to cover the areas that are excluded in the condo association’s master policy. Condo insurance offers coverage for these main areas:
- Personal property
- Personal liability
- Walls and floors
- Additions and alterations.
In addition to the condo property itself and the insured’s personal property, later additions such as cabinets, appliances, and fixtures can be included in coverage. However, it’s important that the insured review their association’s specific bylaws in order to ensure that they are getting the coverage that they need.
3. How much does condo insurance cost?
A very basic policy can start at around $300 per year, offering very elemental coverage and lower maximum limits for liability claims. Customers with higher value condos can spend as much as $1000 to $2500 per year for more inclusive coverage that includes higher property, walls-and-floors and liability coverage limits. Premiums can also vary based on the deductible chosen by the insured. A higher deductible often saves condo dwellers money on premiums in the long run, and discourages them from filing smaller claims – which can have an effect on their insurability in the future.
4. Does condo insurance cover dogs too?
Condo insurance can include liability for claims relating to dogs, however the insurance company needs to know about the dog beforehand. Additionally, there may be restrictions on coverage for certain breeds such as Rottweilers, Doberman Pinschers or Pit Bull Terriers, or any dog with a history of previous bites.
5. What doesn’t condo insurance cover?
Condo insurance covers a lot of situations, but does come with exclusions. Common exclusions include:
- Damage from insects and vermin.
- Damage from mold
- Damage from storm-related flood waters
- Intentional injuries to others
- Medical expenses for anyone listed as an insured party
- Short term renters or sub-letters, unless specifically added to the policy
- Regular wear and tear on the unit
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.