It’s always a good idea to insure the contents of your home. However, condominium insurance isn’t quite the same as home insurance, so it’s important to understand just how it works to make sure you get the coverage you need without paying for more than that.
What’s Already Covered
Because a condominium is just part of a shared complex, part of the complex is already insured through a policy paid for with the condominium association dues. Check to figure out what’s covered under this policy. Common areas are usually covered under this policy, but not necessarily anything within the walls of an individual’s unit which typically requires the separate condominium insurance. Some condominium associations have coverage for the walls, but nothing inside the unit, which is a bare walls-in master policy, while others may be more inclusive and have an all-in master policy, which would cover things like walls, floors, ceilings and fixtures.
Type of Coverage Wanted
The next step is to figure out how much coverage a person needs based on their belongings and what it would cost to replace them. Remember, the flooring, walls and cabinets may need to be replaced in some cases, such as when there’s a fire. It’s typically better to choose replacement-cost coverage over cash-value coverage, as cash-value condominium insurance only covers the cost minus depreciation, not what it would cost to actually replace the contents. Insure both the contents and the structure, which includes such things as carpeting, lighting, counters, flooring and cabinets. Contents-only insurance would only cover belongings, not things actually attached to the walls and floors.
Some people get extra insurance to help cover their share of the deductible of the condo association policy or to get insurance against flood and wind damage, which is usually optional and may not be included in the policy otherwise. Check to see whether the policy contains liability insurance, loss of use coverage and medical payment coverage, which you might want to add to the policy if they’re not already included.
Contact Kin Insurance to find out more about how to choose condominium insurance.