Condominium Insurance

Condo insurance is a type of insurance that is very much like home insurance or tenant insurance. Condo insurance is a policy that helps a condominium owner protect their personal belongings. While the Condominium Association often insures the building that a condo is housed in, the actual condo and its contents are not covered under such insurance. Thus, the owner of the condominium becomes responsible for the additional insurance: insurance that covers the condo and the belongings therein. The Condominium Association buys insurance that often covers the surrounding areas of the building, the actual building itself, and the areas that are shared by all of the condo owners. The purchased condo is considered a separate unit, therefore requiring additional condo insurance. As a condo owner, you are responsible for understanding what is and is not covered by the insurance purchased by the Condominium Association. You will also be responsible for understanding your own condo insurance and what it covers.

Like homes that require home insurance, condominiums require a certain amount of coverage to protect all that is contained within the condo. While the insurance for a condo is not as extensive as one would purchase for a home, it is a policy that will reimburse a policyholder in the event that their condo or the property within it is damaged. The typical condo insurance policy contains protection for personal belongings and it also provides basic liability coverage: coverage that will protect the condo owner if someone should get hurt at the location. An HO-6 is a form that a condo owner will have, that includes such protection when condo insurance is purchased.

Before buying condo insurance the condo owner will have to carefully review the Condominium Associations Declaration. This is a document that details what is covered by the Condominium Association’s insurance. Once the declaration is reviewed, the condo owner will have a better idea of what kind of coverage they will actually require when it comes time to buy condo insurance.

When you first address the Condominium Association and review the Association Declaration, you will have a far better idea about your condo insurance needs. Further, if there remain any questions after a complete review of the declaration, don’t hesitate to ask them. Make sure you question whether or not the outside areas of the condo are covered, and if so, what precisely is covered. The Condominium Association may also be able to provide you with some recommendations about where you can get condo insurance, and perhaps reveal to you recommendations by others who have condos in the building.

There are several things you will need to consider before you buy condo insurance. First and foremost, you will need to assess what your property is worth. You can do this by sitting down and thinking about replacement costs. What do you think all of your personal property is worth? It helps if you take an extensive inventory of your property. How much is the condo worth if you were to lose everything? What kind of liability coverage do you think will be adequate? What kind of “acts of God” do you want covered: do you want coverage for fire, theft, vandalism, flooding are all of the latter mentioned events?

Let’s face it; three basic things have to be fulfilled before you will feel totally secure: First, you will need to get adequate coverage for your condo. Secondly, you will need to understand all of the ins and outs of your condo insurance. Third, you will need to know that your condo is covered, no matter what unexpected event may strike.

One of the most important things you can do before you buy home insurance or condo insurance is to create a detailed home inventory. In the event that something happens to your condo or your belongings, you will have a complete list of everything you owned. This will make replacement a bit easier, it will help you have a better handle on the amount of condo insurance or home insurance that you need; it will help any and all claims through the insurance company meet a speedier end; and it can serve as verification come tax time when you write off your losses. Finally, with a home inventory list, you will not be struggling to remember what property you had before you lost it.

One of the most convenient ways to create a home inventory list is to go through every room in your house or condo, one room at a time. If you are just purchasing a new condo, you can start by inventorying what is being unpacked, or you can conduct the inventory as you are packing. You will want to create a detailed list and you may want to create sub-headers for different types of belongings. For example, create a list that includes your clothing, electronics, furniture, collectibles, jewelry and the like.

A lot of people like to take photographs or video tapings of what they own. This works as proof that they actually owned the belongings in the event that the belongings are destroyed. Along with photographs and/or video, people also keep their receipts for purchases made. You will find that art and jewelry may fall under special insurance needs, but you will still want to inventory them anyway.

The most important measure you can make when you are creating a home inventory is to do it before you buy condo insurance and to keep the list in a location off the premises. For example, if you have a safety deposit box, that is where your home inventory should remain. At the very least, keep it in a fireproof safety box, and keep a copy of the list with someone you trust like a relative. Keep the inventory, the photos, the videos and whatever other important documentation you have in the same place for easy location. Finally, update the home inventory list at least once a year.

While creating a home inventory that represents everything in your condo, be sure to add things like the appliances, the cabinetry, and carpeting. Try to include as much detail as you possibly can so that you can accurately calculate your condo insurance needs. Again, with photographs and with video, if you miss anything on your list, you will at least have it documented on photo or video and you can catch it later and list it.

When it comes time to get home insurance or condo insurance, make sure that you have all the bases covered. You will want insurance coverage that is ample and that covers various unexpected events. Fire, flooding, vandalism, theft, water damage from broken pipes and drain backups and the like should all be included in your policy. Also, see if you can get a policy that provides blanket coverage. Blanket coverage will cover you and your belongings even when another tenant does not have condo insurance.

Don’t forget to get special insurance for any artwork or jewelry you may own. Most condo insurance policies will not cover such items. Such items fall into an entirely different category. You will need to get estimates on your artwork and your jewelry and then get the proper insurance on them. They should be photographed and videoed as well, as proof of ownership.

You will want to make sure that your condo insurance is up to par. It should cover any damage to any condo improvements made, and it should also cover any additional living expenses you may incur due to loss of the property. Most policies protect against damage caused by building collapse, civil turmoil, damage caused by aircrafts; damage caused by ice; damage caused by sleet; damage caused by snow; damage caused by vehicles; explosions, falling objects; fire, hail, lightening strikes, riots, smoke damage, theft, vandalism, water damage, and windstorms. In addition to the latter coverage, personal liability, and in some instances, pet damages are also added to coverage.

The policy will need to be reviewed carefully before it is signed and paid for. You must make sure that you fully understand what is covered and what is not. If something is not covered and you want it covered by your condo insurance, you should ask the insurance carrier if it is something that can be added onto your policy or if you can purchase separate insurance for it.

If you want to keep the costs of your condo insurance low, there are several measures you can take. Many insurance companies will give special discounts for safety measures taken on by the condo owner. If the condo owner adds protection devices to the condo, it can result in a significant reduction in the condo owner’s insurance premium.

Did you know that just by adding an alarm system to a condo you could get a condo insurance reduction? Added measures to protect your condo from theft and vandalism are taken very seriously by insurance carriers. By reducing the risk that your condo will be robbed or vandalized, you reduce the amount of condo insurance you have to pay. Add an alarm system, a video camera, and dead bolts should be installed on your front and back doors. Watch the cost of your insurance drop!

Next, prepare in event of a fire. Add carbon monoxide detectors, smoke detectors (if not already installed) and put fire extinguishers in locations where they can be easily accessed. Having a sprinkler system installed if it is not present will also lower the costs of insurance. This is not just common sense; it will reduce the amount of condo insurance you pay significantly.

Keeping your home safe pays off in the long term. Not only will you fend off any loss, but also your condo insurance premiums may lower over time if you do not suffer any losses. Some insurance carriers are willing to offer up to 15 percent discounts for a loss free record for a certain number of years.

You may want to get your condo insurance from the same company you get your home insurance from. There are insurance companies that offer additional discounts for homeowners that get multiple policies. This is just another way to save yourself money on condo insurance.

The services offered by insurance carriers that provide you with condo insurance are truly innovative and convenient. You will find that insurance carriers offer outstanding customer service and are often available 24 hours a day. Along with great customer service, you will find that they have an array of policies to choose from. Some insurance carriers allow for monthly payments with yearly policy renewals. Other companies willingly deducted premium payments from a banking account, making bill paying a process that is simple and efficient. Further, e-billing and paperless billing is often available.

In the event that you suffer a loss and it can be repaired, you may not know where to begin. Who can you hire to repair the damage? Who can you trust to do a good job? Insurance carriers sometimes offer network referral programs to alleviate your anxiety about hiring a professional. The carrier will provide you with a complete list of competent professionals to handle your repair work. You should ask if your carrier has such an offer or system in place.

If you are forced to leave your condo due to extensive damage, many insurance companies offer reimbursement for living expenses. If you have to pay for a hotel, food, and the like, it may be included in your policy. Again, ask the carrier if they have such a system in place. Finally, additional coverage that is not on all policies includes coverage for damaged locks, jewelry, and artwork. You may need special coverage for such items.

When you purchase condo insurance, you may want to upgrade the policy on a regular basis. For instance, if you buy a condo, buy condo insurance and then later make upgrades or improvements, you will want your condo insurance to reflect such changes. Keeping track of the cost of improvements is important, it will help you determine if you need to add additional coverage to your condo insurance and if so, how much. Bear in mind, the newer the condo the lower the insurance will be. This is because older condos may not meet all of the safety standards that newer condos do.

If you are a condo owner and you smoke, you may want to quit. Would you believe smoking affects the cost of condo insurance? Smoking can damage the property over time and it puts everyone in the house at risk of a fire. Thus, the risk is reflected in the cost of condo insurance. If you really want to keep your condo insurance at an all time low, it's time to quit smoking.

To keep your premium at an all time low, consider taking on a higher deductible. The deductible is paid out of pocket before the insurance company pays. If you take on a higher deductible the cost of your premium for condo insurance can drop as much as fifty percent!

The elderly and retired may find that they can get additional discounts for condo insurance. Oftentimes, insurance carriers offer special discounts for older individuals. If you don't ask, you won't know! Find out if the insurance carrier you are working with has any special discounts that can save you additional money.

If you already have an insurance company that you use for your home insurance or automobile insurance, you may want to contact the company to determine if they offer condo insurance as well. Many insurance companies will give you a discount for multiple policies. Besides working with one insurance carrier makes things a whole lot easier on you in terms of record keeping and contact.

If you rather shop for a different company, the Internet is a great place to start a price comparative search. Get a couple of condo insurance quotes from various insurance carriers and compare prices. In order to get a condo insurance quote you will need to provide your name, contact information, your spouse’s information if applicable and information on the condo you wish to ensure. It helps to know the date of construction of the condo, the date any renovations were made, the square footage of the condo, the liability limit you desire, and the coverage you desire.

If there is an opportunity to add additional comments to your electronic query for a condo insurance quote, be sure to mention any added protective measures that exist in your condo. This will help the insurance carrier provide you with a quote that is accurate, and one that includes any possible deductions you qualify for. Finally, you will receive a call from a qualified insurance representative or an email offering you a quote on insurance. Review several quotes, compare offers, and pick the policy that best serves your needs.