When you purchase any new home, including a condo, you’ll need insurance. There are a number of condo insurance mistakes that other owners have made that you should certainly try to avoid. Here are three extremely common condo insurance mistakes far too many people have made in the past.
Condo Insurance Mistake #1: Not understanding the condominium association requirements.
Every Condominium Homeowners Association will have different requirements of their residents. You need to sit down and go over every expectation with regard to your personal responsibilities and the type of insurance you need to carry.
For example, you may be responsible for any damage that occurs to the outside portion of the condominium. You also might be responsible for walkways and other areas. This can increase liability risks. Make sure you have the insurance necessary to protect yourself and meet those condo requirements.
Condo Insurance Mistake #2: Letting the insurance lapse.
If you get into difficult financial times you may be tempted to allow that insurance policy to lapse, at least for a while until you’re back on your feet. After all, who will know?
The Condo Homeowners Association will, that’s who. Not only that, if your lender finds out you could be facing serious fines and other repercussions.
Condo Insurance Mistake #3: Focusing on the cheapest policies.
You can certainly find cheap policies to cover the basics, but living in a condo means there are other people around you and accidents and mishaps can certainly happen on their behalf.
If a fire breaks out in the unit next to you your condo can be severely damaged by smoke, fire, and even water damage when the fire department comes to put out that fire. Make sure you get a policy that will protect you as well as any could.