Condos like Kovan Treasure are quite different from regular houses. But this doesn’t mean you shouldn’t get them insured. Even though this may seem counterintuitive, condo insurance is much more complicated as compared to homeowner’s insurance.
Now here are a few things for you to remember while getting condo insurance:
When you are paying association fees for your condo, you are going to be contributing to the insurance of the common areas in the property. This is the master policy. Before getting a personal policy of your own for your residence, find out what all is included in the master policy. You wouldn’t want to get double coverage unnecessarily now would you? There are a couple of types of master policies, all in and bare walls in. All in policies cover particular fixtures in a unit like flooring or lighting. Bare walls in policies cover the structure of a building but nothing inside the unit.
Content policies vs structure policies
When choosing a condo insurance policy, you should make sure it covers the content and the structure and not just one of them.
Cash value vs replacement cost coverage
With cash value coverage, depreciation is also going to be included in the payout. When it comes to replacement cost coverage, depreciation will not be factored in.
What happens if someone sues you for property that has been damaged by your children or guests? Does your insurance cover this liability? When thinking about coverage, it is always recommended that you stay on the safe side and get a minimum liability coverage just in case you or one of your family members have accidental mishaps on your property.
Just keep your lifestyle and needs in mind when buying insurance for your condo and you should be just fine.