“I own my Condo, what should I be aware of?”
Condominium owners have unique insurance needs that depend on their association. Some associations have condo policies that cover the interior of each unit and even some contents for each owner. Some associations have common areas that each owner is responsible for in part. And some associations carry a high deductible on the buildings that could result in higher out of pocket expenses for each owner should there be a claim.
First of all, as a condo owner, you need to read the association’s policy and pay special attention to areas that could cost you money. Does that policy cover your unit improvements or contents? Does it have a high deductible? Are you responsible for injuries occurring in common areas or buildings?
Second, you will likely need to purchase a separate policy to cover your unit’s interior improvements. This policy would also cover your personal property, personal liability and any “Loss Assessment” that might occur.
Finally, if your association’s policy does cover unit owner’s, you will want to know the claims history of this policy. In these situations, each unit owner is able to file claims for losses in their unit but these claims will count toward the renewal premium on that policy often resulting in higher premiums. If you have an association with a policy that has multiple claims, it may be to your benefit to change that policy and have each owner purchase their own coverage.