ondominium insurance is just for those people who rent or own a condo. While your condo association has some insurance, it will not cover what may be damaged or destroyed inside the four walls of your property. That is why it is essential that you purchase a condominium insurance policy to reduce the financial risk to you.
Condo insurance works in much the same way as a homeowner’s policy. A monthly payment or premium is made to the insurance company and the company gives you insurance coverage in exchange for your payment. When an event occurs that damages your property, you file a claim with the insurance company and they pay the claim based on the coverage that you have chosen.
Many different events can damage your condo. From fire to water damage to tornado and more, your insurance company will cover your personal items that are damaged or broken. It will pay to replace them or repair them as needed.
You have options in your condominium insurance coverage. From building property protection that covers any additions or special features that you have placed in the unit to personal property insurance that covers your furniture, electronics, clothing, and other personal property to loss of use coverage that will pay out if you are unable to stay in the condo, you can choose the policy (ies) that best work for you and your needs.
Another type of condo insurance that you want to consider is liability coverage. This coverage will protect you against lawsuits and judgments if someone is injured on your property and it will offer payments to someone who may file a personal injury claim.
Your condominium is your home and if you do not protect it with insurance, you can be setting yourself up for a financial issue. Find the coverage that will work best for you and your needs.