Is Condo Insurance Really Necessary?
It doesn’t matter if you plan to purchase a condominium as your starter home or to buy it as a vacation home; it is necessary to protect this asset with the right insurance. Condo insurance and homeowner’s insurance have many of the same protections. It’s designed to cover the structure and your personal items inside.
However, unlike home insurance coverage, your condo unit owners insurance Fort Myers FL will work along with additional coverage offered by the HOA. If you have financed your condo, the lender will likely require that you purchase a condo insurance policy. This will likely be required by the HOA, as well.
Condo Insurance vs. HOA Insurance
You will find two types of insurance policies for covering condos. One is an individual condo insurance policy, and the other is the HOA insurance policy. The building managers will buy the HOA policies, which are sometimes referred to as a master policy with the funds collected from everyone’s association fees. These policies will cover the structure, common areas, roofs, exterior walls, and elevators.
Usually, the HOA policies won’t provide coverage for your individual unit. Because of this, you must purchase insurance, which is called an HO-6 policy. This provides minimal structural protection or coverage. For example, the condo policy may only cover damage if it occurs to the unit’s walls, floors, or ceilings.
Condo Insurance Coverage
Condo insurance is like your homeowner’s insurance policy. They will cover all the same issues that may arise within your home. The standard condo policy will likely include dwelling coverage, loss of use coverage, medical payments to other people, personal liability coverage, and personal property coverage.
Purchasing Condo Coverage
If you own a condo, then purchasing adequate condo coverage is a must to protect this asset. There are many options, policies, and insurers, so be sure you shop around to find the best coverage for your needs and budget.