Most people dream of buying a condominium, and some even get to make the purchase. As you celebrate that purchase, it is important to remember to take care of certain things like buying condo insurance.
There are times when things can go wrong, and you need insurance to step in and rescue the situation. Owning a unit among other condo owners is always a recipe for complications. Condo insurance caters to your needs in such circumstances. Should an accident happen, condo insurance will prevent you from incurring high costs. Here is how you find it most beneficial.
There is normally master insurance that covers the entire complex, of which you and other condo owners pay a monthly fee. You may be covered, but it is not adequate to keep you safe and free from needing other policies.
The master insurance policy is there to take care of the building and common areas, not you condo specifically. If the complex is damaged by a fire, for example, the master policy pays for the construction of a new building. It however will not cater to the compensation of what you lost in the building. You are expected to take care of all fittings, fixtures, and even interior walls.
You will also find there is a need for liability protection. If there is an injury in the common area, it will kick in. But if the accident happened from inside your condo to the outer section, the building’s association will expect you to foot the bills.
Condo insurance will also make sure it takes care of your personal property. Since damage to personal property will most likely occur within your condo, you cannot turn to the master policy for any compensation. Condo insurance caters to your protection against theft, damage and destruction of your personal property.
Should the master policy ever have an assessment that leads to a deductible, you will not suffer if you have condo insurance. There are cases where the master policy underinsured the owners. In such cases, you will be expected to cover the additional costs. Condo insurance will make sure you do not pay for such costs out of pocket.
You will also find it effective when it caters to the expenses of housing you when your condo is under repair. Should the damage be so extensive that you need to move out temporarily, paying for your accommodation can be expensive.
You will also see it being effective in promoting the spirit of community. There will be problems if one of you is ever sued by another for causing damages. But if there is such a policy to cater to those expenses, it will not be so bad. It will help in the revival of the spirit of community.