Condo Owner's Insurance Coverage
Condo unit owners insurance is a must for all individuals who own a condo.
One point frequently overlooked is whether or not the individual unit owner is responsible for the actual structure of their particular unit. To be sure, each owner should read a copy of the association by-laws to determine exactly what is to be expected from the individual owner's insurance coverage.
For example some associations cover the structure completely others cover just the outside walls and the owner is responsible for everything "studs in". Once the owner or their insurance agent determines this, the correct policy can be written to address these issues.
Secondly, and just as important, all condo policies are written to cover the owner's belongings on a broad form basis thus leaving some gaps in coverage for the unit owner.
For example, the building sustains water damage from the back up of ice and snow. This water damage travels into the individual unit and causes further damage to the couch and the TV. The association's building insurance will not cover this.
Under a typical condo unit owner's insurance policy, which includes broad form coverage for contents thus this claim would be excluded under this policy is well leaving the owner with no coverage and a financial burden to replace the damaged contents.
Be sure to ask your insurance agent to have your policy written on an "all risk" basis for contents to ensure coverage in this situation. Properly reviewing coverage with your agent will protect you down the road in the event of a claim.
Request a Condo insurance quote and speak with an insurance expert near you. Understand the coverage that you require before there is a loss.