How to Understand Condo Insurance
- 1). Talk with your complex. Different complexes that sell condo property have different regulations about condo insurance. Be sure you understand how much coverage and what type of coverage you need for your complex.
- 2). Look into the fees for your complex. You own your own condo, as well as a portion of the common area. For these areas to be insured, complexes typically collect monthly or yearly fees from residents.
- 3). Know the difference between the types of policies. Bare walls in policies only cover the exterior of your condo, while all in policies also cover interior surfaces, fixtures and additions. Cash-value policies will cover the replacement of insured items minus depreciation, which is based on how old the items are. Replacement-cost coverage, on the other hand, will cover the cost for a new version of the insured items. Your complex can let you know if there are any requirements and what those requirements are for insurance coverage. Usually, condos have insurance requirements for structural damage, but not for personal items.
- 4). Meet with an insurance agent. An insurance agent can go over all your insurance options for your condo and explain any aspects of the policies that you don't fully understand. Meet with a few different agencies to help you get a better perspective of what is available and help you understand your options more fully.
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