Whether you buy a house or a condominium, home lenders will require you to take out insurance on the property if it has a mortgage. However, when you buy a house, you take ownership of the dwelling and the land it comes with. Condos are privately-owned units within a building and require different insurance policies than houses. An insurance agent can explain the differences and offer expert advice, but here is a quick guide you can use as well.

What Is Condo Insurance?

As a condo owner, you’ll need to know the difference between condo insurance and homeowners association (HOA) master policy—the latter covers the entire structure and common areas of the building for physical damage and liability. Some master policies may also cover originally built standard fixtures or structural parts, such as bare walls, floors, and ceilings, in individual units. An insurance agent can help you know exactly what is covered under your policy.

On the other hand, condo insurance provides more precise coverage but is limited to your unit. A standard individual policy will have the following coverage: personal liability, personal property, and building property protection.

What Are Personal Liability, Personal Property and Building Coverages?

Personal liability coverage pays for the medical expenses if a guest suffers injuries while inside your condo, and liability costs if the victim decides to sue you. Personal property coverage kicks in if your belongings are damaged or stolen under a covered loss.

Meanwhile, building property protection covers repair costs of damages stemming from covered perils, such as fires, explosions, and vandalism. Sometimes, it also covers additional living expenses for when you need to stay out during ongoing repairs.

Apart from these, you can add protections as you see fit. Flood is often excluded as covered peril in the standard condo insurance policy, so consider getting flood insurance from the National Flood Insurance Program. Loss assessment coverage pays for your share when the HOA requires unit owners to contribute to major building repairs.

Why Do You Need It?

Like most insurance policies, condo insurance is to protect you against costly expenditures arising from unforeseen events. The insurance company will pay for or reimburse the related costs of damages under covered perils, but only up to the policy’s limits. Moreover, it is a cost-effective way to protect your investment.  

Get more insight on how to protect your property by consulting with an insurance agent from Lighthouse Agency Inc. Since their start in 1996, they have become one of the most trusted insurance agencies in Fairfield, OH, offering a range of homeowners and renters insurance from leading providers. With their experience, you can rest assured they will help you find the best insurance policy for your needs. Get a free quote online, or call (513) 860-9100 for an initial consultation with an insurance agent.