When buying condo insurance it is important to learn about the coverage between different policies and what the Master Policy will cover. Many people think that the Master Policy is the only insurance that they need to protect their condo. Owning a policy that is separate from the insurance policy of the Condo Association guarantees that your condo is secure from loss.
Here are a few things to be aware of when it comes to your condo insurance policy and what to look for when purchasing one.
Master Policy Coverage
Master Policies that are split among the owners or renters of the condominium only cover a limited list of items. Most cover the common areas, grounds, and the building with liability insurance. This provides coverage in the event that anyone is hurt while on the property in public areas. The Master Policy does not cover the inside of each individual condo in regards to items, damage, or people becoming hurt.
Private Insurance
Buying your own condo insurance policy will cover any damages that occur within the home. Items inside the home will also be included in a separate condo policy as well as natural events. The only events that often require a separate policy are earthquakes and floods. These are add-on policies that would cost extra to receive the coverage in case these happen. If you use any area of the condo for business, that would also need a separate insurance policy.
Options and Add-On
There are a number of options available when buying condo insurance especially for covering belongings inside the home. It is recommended to purchase replacement cost for any items you wish to include on the policy. In the event they were stolen or damaged through any event, the insurance policy would cover the cost to replace these items. That means if your computer was taken or damaged, you would receive the amount it would cost today to buy a new one of comparable ability.
Another add-on that can be useful for any type of collections you may own is the personal property floater. This covers items by increasing the limits of coverage on valuables. Whether it is jewelry or a Star Wars Collection, you can be assured of coverage with this add-on to your condo insurance policy.
You may be able to save a little bit by raising the deductible amount. Check with the Master Policy for each of the condo owners or renters to see how much the deductible would cost in the event of emergency. Making sure that you can afford the Master Policy deductible as well as the deductible for your private insurance is recommended before raising the level too high.
Discounts are available for certain safety items that may already be in your condo. These include smoke detectors, multi policy discounts, and alarms. Asking your local insurance agent about these discounts could lead to a lot of savings. Many agencies are able to offer you several quotes from the major insurance companies at one time for the insurance for your condo.