Florida routinely comes close to the top of the list for states with high percentages of condos, especially in coastal counties with more robust downtown areas. Just like when owning a traditional home, having condo insurance is of utmost importance. However, because of the joint ownership of the building that living in a condo brings, it can be confusing for condo owners to know what their personal insurance covers and which parts are covered by their condominium owner’s master policy. To learn more about these important distinctions, read this blog and ensure you are being completely covered for all accidents and disasters.
The Two Types of Insurance For Condos
Living in a condo brings with it sharing many communal areas with neighbors around you. Though you may have to pay dues for upkeep and maintenance, the building’s HOA insurance policy will cover things such as wiring, plumbing, infrastructure and structure, and building common areas. Some policies might include coverage for countertops, light fixtures, and built-in appliances like fridges, but these are not universal. Reading your condominium’s specific HOA insurance policy is paramount to knowing which areas of your living quarters are insured and which are not. In general, your building’s insurance policy covers only things that the building provides to everyone; personal property and liability insurance for activities happening inside your condo property are outside the scope of most building insurance plans.
Personal condo insurance policies are more akin to the average homeowner’s insurance property you can find on the market. These will provide coverage for things like theft, vandalism, fire, storms, and accident liability. Your personal condo should ideally cover all aspects that your building coverage does not protect against, which is why understanding the overall coverage provided by your HOA is so important. It is relatively common that HOA coverage will cover structural damage to the interior walls of a condo property, but this is not always the case. Ignorance will not help you when the bill comes due, so knowing whether or not to include this type of structural dwelling coverage in your personal plan is something you should research before you pick a plan.
Here are all the common things left out of HOA policies that you should aim to include in your own personal plan:
Personal belongings: Personal belongings being damaged or stolen is the most fundamental reason to have personal insurance on your condo.
Personal liability: Guests injured outside of a common area and inside of your condo can sue you personally, which will be covered by your personal insurance. Medical liability can also help cover the medical costs of people injured on your property.
Additional Storage: Areas of the condo complex that are not connected to the main building, such as garages or storage areas, might not be covered in the HOA policy regarding theft or damages.
Housing Stipend: A disaster such as a fire, flood, or storm that causes your condo to be unlivable might cause you to spend a large amount of money on temporary housing, such as a short team lease or a hotel stay, while repairs are made. Insurance can cover this and reimburse you for the cost.
If you are purchasing a condo and have questions about the type of insurance you need, call a local insurance professional for assistance. We will review the condo’s master policy with you, discuss your lender’s requirements, and recommend the best insurance policy to cover you in your new home. Anderson & Associates Insurance Group provides home, life, and medical insurance throughout Sarasota and Manatee County.
