YOU ASK:

What is characteristic of a condominium insurance policy?

WE ANSWER:

Because of the fact they pay monthly for cooperation insurance, condominium owners wrongly believe that they are fully protected against any damage or loss that their unit may suffer. The misunderstanding usually continues until they file a claim only to find out that their personal belongings are not covered by the association's master policy.

Why Buy a Condominium Insurance Policy

The building insurance policy which co-op tenants participate in typically covers areas which they share, such as corridors, hallways, elevators, etc. It may or may or may not be more inclusive and offer protection for the standard fixtures of every condominium unit but it won't cover any of your personal belongings against theft or damage. Nor will it provide any liability coverage if somebody gets injured in your unit. This is why you need to purchase a separate condo insurance policy.

How Condominium Insurance Policies Work

Condo insurance is specifically designed for condominium and town house owners and is also commonly referred to as Homeowners Form 6. It offers the same coverage as those provided by standard homeowners insurance: Coverage A for dwelling, Coverage B for any detached structures, Coverage C for personal belongings, Coverage D for loss of use, Coverage E for liability and Coverage F for medical payments of others.

Before buying condo insurance, you need to determine how much of your unit is actually covered by your association's master insurance policy. It may cover only the bare walls of your condominium but it may provide more extensive protection for some fixtures inside. A condo policy should be bought to cover the gaps of the building's insurance and you should make sure it covers them well.

Several are the factors that determine the condominium insurance premium. Location and value of the unit are among the most important of them. The newer the condominium, the lower the insurance rate.

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