Condo insurance offers structural, personal property and liability protection for people who live in condominiums. This insurance is designed for individuals who own a condo.
There is a difference between individual insurance for condo owners versus condo association insurance. While condo associations do typically carry insurance, they do not offer very much protection for people who own a condo within the building. Condo association insurance protects against losses or damage to communally owned property or the exterior of the building itself. It is sometimes said that condo association insurance only offers protection up to the exterior walls, but it does not cover anything inside the interior walls of an individual’s condo.
Within the walls of a person’s condo, individual condo insurance protects an owner from losses to personal property damage or theft. Insurance reimburses owners for damage to property caused by fire, lightning, smoke, vandalism, water discharge and other covered causes. The insurance also covers damage to interior fixtures in the unit.
Furthermore, insurance provides liability protection to owners. It covers them against property damage or bodily injuries to others on their property.
Standard coverage typically covers accidental damage to the dwelling, personal possessions, bodily injury and property liability coverage. Some insurance agencies also offer additional living expenses or loss of use coverage as part of the standard policy; it covers living expenses if an owner must relocate due to an unlivable condo.
Oftentimes, optional additional coverages are available. Some optional coverages include rare valuables coverage such as art, jewelry or collectibles. Another optional policy is replacement cost coverage; this means if an owner suffers a property loss, insurance will provide reimbursement for the full cost of purchasing a new replacement item without accounting for depreciation. Some insurance companies may even offer identity theft coverage as an optional policy.
The major benefit of insurance for condo owners is peace of mind. Owners are financially protected from serious financial losses due to unexpected personal property damage or being sued over bodily injury. Life events that result in potential losses can occur for a variety of reasons, many of them being unexpected.