Purchasing a condo is not all that different than purchasing a home. You are going to need to acquire a mortgage (most likely), make an offer, and have the owner of that condo accept the offer. However, once your offer is accepted, you will need to get condo insurance.
That’s where things can get interesting. Condo insurance is, in many aspects, similar in concept to homeowner’s insurance. However, with a house you are the sole owner and that means you don’t have to worry about other tenants, a condo association, or any bylaws with which you need to comply. All you’d have to do is make sure that you get the proper level of homeowner’s insurance for your mortgage and your needs and you’re done.
With condo insurance, there are some key differences that you need to keep in mind and consider.
1. You’re purchasing insurance for the space within your condo unit.
In most condo complexes, you are only responsible for the interior aspects of your unit. The association that controls and manages the property will be responsible for the exterior. That means your insurance will not likely need to cover any exterior damage to the unit.
However, if a tree falls onto your unit, it’s most likely going to damage more than just the exterior.
2. You need to take into consideration your neighbors.
You won’t really know your neighbors when you first move in, so you don’t know how responsible they are. They may forget the stove is on one day and that can cause a fire. You’re not just insurance against Mother Nature and your own mishaps, but other people as well.
3. You’ll need to consider loss assessment.
As a part of the condo community, you’re going to need to consider ‘loss assessment’ insurance. This means that if there are problems with the building, or the public spaces, that need to be repaired, you will need to pay your percentage for them. This is called loss assessment and you’ll want to consider this level of insurance to protect yourself against it.
If you are planning on purchasing a condo, or you’ve just purchased one, contact James Campbell Insurance to get the right level of condo insurance to keep yourself and your home protected.