This is one of the happiest days of your life! You have just purchased your new condominium. You have taken care of all the details and have spoken to your condo association about your insurance, so now it is time to relax! Or is it.
Many people who purchase a condo think that because they belong to the condo association, the association covers them for their insurance needs. That is not completely true. Most condos need two insurance policies.
- The insurance policy through your association usually covers the physical structure of the building, including the basement, roof, walls, elevators, lobbies, physical damage, liability, etc. It is all the common area of the building. There could also be loss assessments made by the association which are not covered by the association policy. That could mean additional monies out of your pocket at the time of claim.
- A personal condo policy not only covers the loss assessments, but also your personal property and what is inside the condo itself. This means the structural damage to your unit, including cabinets, appliances, personal belongs, and more. It will cover your furniture and clothing, as well. It will also cover you for any personal liability in case there is a lawsuit against you for injury or property damage. There is also many optional coverages that may be added on to your policy, depending on your need and cost.
The bottom line is that you should have two condo policies. Owning both will give you the blanket protection that you need. It will give you peace of mind knowing your condo is covered and the realization that, YES, it is time to RELAX!