This is a coverage that has become near and dear to my heart as I am now a newly minted condo owner (Thank you Rebecca Haas and Eric Aasness). As an insurance agent I have always been amazed at how people would take all of this time, money and effort to buy the condo of their dreams and expect someone else to protect (i.e. the Master Policy) it. Let’s face it, the Master Policy’s the last thing you’d want to read. It’s boring and full of insurance misto-babel. Some master policies cover more than others but in a nut shell it is designed to protect the building and common areas and its purpose is to make sure the structure and common areas can and will be rebuilt in the event of a loss.
There is no coverage for your personal property such as your clothes, flat screen TV or the new sofa you just purchased. So everything from the walls in are your responsibility. Items like fixtures, cabinets or appliances maybe covered by the master policy but often are not especially if you’ve remodeled your place in any way.
This is where I, your friendly insurance agent, enter the picture and ask you if you feel safe knowing your neighbor has a candle fetish and another can’t even boil water to make tea. I believe condo insurance should be thought of the same as home insurance. All too often it has been looked at like renters insurance and considered optional and it also doesn’t help that it is not a required condition for closing your loan. Thankfully, the new construction condo I just purchased DID require proof of individual unit coverage prior to closing any sales.
To get an idea of what condo coverage costs I always recommend you start where you have your auto insurance coverage. Most companies give a discount for having more than one policy with the same company. I also think this might be the right time to review all of your insurance coverage and make sure you are maximizing discounts and coverage.
Thanks for listening to your favorite online and blogging insurance agent. Feel free to call or email me with any questions about this or any other type of coverage. I wanted to share some of my thoughts about condo coverage in the hope that it might help all of us condo owners out here. Take care and be well.
