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Buying a condo is an investment. While you don’t own the building, you’ll still want to protect the investment you made. If you’re taking the exciting step of making a purchase, a condo insurance plan will offer you peace of mind by protecting your belongings in case of unforeseen events.

What Should You Know About Condo Insurance?

How does condo insurance work?

While it is sometimes optional, many mortgage lenders make it a requirement to have.

Condo insurance is different from homeowner’s insurance because of what is actually owned. A homeowner must pay insurance on the exterior of the house, including the property, as well as the interior.

A condo owner is only responsible for insuring the interior of the unit. The exterior of the building, along with the land it’s built upon, is covered by the condo’s homeowners association (HOA).

However, like homeowner’s insurance, you will still have a premium, which determines how much you pay for the insurance. You’ll also have a deductible—an amount of money you’ll pay yourself before your insurance applies to a claim. All insurance also has a limit as to how much they’ll pay for a claim.

What gets covered by the HOA?

Condo insuranceMany condos have common areas, like elevators, laundry rooms, hallways, and parking lots. If they take damage, the HOA will cover the cost of repairs under their own insurance plan.

However, if their policy has a deductible, the residents will split the cost evenly.

What does condo insurance cover?

Depending on your type of policy, you can receive coverage for the repairs or replacement of items, property that was stolen, as well as medical bills and legal fees if someone is injured in your unit.

If your condo become uninhabitable, your policy will pay for your living expenses until you return to the unit.

Go through your personal effects for items of value. This may include jewelry, artwork, entertainment systems, furniture, appliances, and electronic devices. Take pictures of them and write down their price, serial numbers, and dates of purchase. When applying for condo insurance, this information will help your agent better understand how much coverage you need.

 

For their condo insurance needs, the residents of New London, CT, have relied on Action Auto Insurance Agency Inc. for over 30 years. They work with major companies, including Progressive®, AIG®, and Mutual of Omaha® to get you the most coverage for the least amount of money. For more information on their other services, including boat, home, and renter’s insurance, visit their website. To make an appointment with one of their knowledgeable brokers, reach out to them at (860) 444-7224.

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