Buying a condo is a convenient way to not worry about building maintenance and general care of the property. You, as the owner, are responsible for the interior of your condo, including your own personal possessions. Most condo associations require that their residents carry their own personal condo insurance.
It’s easy to overspend as well as not have the appropriate level of insurance for your condo, especially if you don’t know much about this type of property. Avoid the following common mistakes when you purchased condo insurance.
Understand the association’s policies.
Many condo associations carry general insurance policies for the property. However, you may still be responsible for a deductible on the property itself. In other words, if your neighbor has a fire and it damages part of the external portions of the property, you may be responsible to helping to pay the deductible on that policy.
Have protection against damage to another condo.
If something that you do causes damage to your neighbor’s condo, then you could be held liable for the repairs. For example, if you’re playing outside with your kids and they hit a ball into the neighbor’s condo and it breaks the window and then a nice glass coffee table, you could very well be responsible for the costs to replace and repair.
If you have a fire in your condo and it damages other units (even smoke damage), you could be responsible for it. Make sure that your condo insurance policy is adequate to cover these potential mishaps.
Avoid making these mistakes.
Not having the right type of policy, having too little coverage, or not thinking that you need certain coverage are three key mistakes people make when buying a condo. Especially if your condo is fully paid for (no loan).
Ask the condo association management what the minimal levels of coverage are that they require. Determine where your liability begins and ends, and then speak to a qualified insurance broker about these issues. It will save you a lot of time and money in the long run to do your research now and get the right policy that will protect you for years to come.