Condo owners invest in the vacation homes as a second home or primary residence. When reviewing their options, the Condo insurance owner must fulfill all obligations related to their mortgage contract and ensure that the property has adequate protection. The properties are often covered by at least a master and standard condo policy.
When reviewing details about the home, the buyer may discover that they need additional policies to protect the property from excessive perils and keep their belongings safer. When reviewing these policies, the condo owner will need to adjust coverage levels and get extra protection for some items in their home.
Securing a Condo Policy
A condo policy is a must-have for all condo owners and they receive necessary protection for their property. Even if the condo is not their primary residence, the owner must obtain the policy as a term of their mortgage contract. The policies protect against covered events that cause property damage and prevent the buyer and mortgage lender from facing a serious financial loss. Condo owners can learn more about purchasing a condo policy by contacting Garrity Insurance now.
Requirements for the Master Policy
All condo owners are required to get a master policy that they purchase through the condo owner’s association. The condo owner pays their dues to the condo owner’s association each year to maintain the coverage and chip in for expenses related to communal areas of the condo community. The condo owner’s association defines bylaws and guidelines for all property owners and tenants that live in the community.
What is Covered Under the Master Policy?
The master policy provides protection for exterior areas for the condo owners. This includes all exterior walls, roofing, sidewalks leading up to the condos, and balconies connected to each unit. All communal areas of the condo community are included in the policies, and the condo owner’s association files a claim through the insurer if any of these exterior areas are damaged by covered events.
The master policy also provides protection against liabilities involving visitors that come to the condo community. If the visitors are injured or cause property damage, the master policy is used to get funds to repair these areas or compensate injured visitors.
Exterior spaces are the direct responsibility of the condo owners, and if they invited someone to visit them, they are not responsible for injuries that occur in communal areas since the condo owner’s association must maintain these spaces.
What is Covered Under the Condo Policy?
The standard condo policy provides protection for the interior spaces of the condo. This includes the flooring, walls, ceilings, and any items that the owner has inside their unit. There are limitations for personal belongings and the owner must evaluate the amount of coverage they have if their belongings become damaged by covered events.
The policies protect the condo owner against liabilities such as slip and fall accidents that could happen inside the condo. If the condo owner has a pet, they can get protection through the policy for liabilities related to a dog attack. The terms of the policy must include the breed of the dog, its weight, and how much of a risk the dog presents to visitors.
For example, if the condo owner has a dog breed that is known to become aggressive, they may pay extra for liability coverage to prevent a lawsuit and provide coverage for medical treatment requires. The liability coverage also applies to service providers, law enforcement, and utility workers who must enter the property to complete their jobs.
Premises liabilities are covered under the policy if the victim was injured inside the condo. This could include falls because of water leaks, clutter, or other hazards that are inside the home. The property owner must conduct risk assessments before allowing visitors inside their condo to prevent accidents and control their monthly premiums. If they have known hazards inside the condo, the property owner is liable for any injuries they cause.
Does the Condo Owner Need a Rider?
Condo owners can get riders for any high-valued items they have inside their condo. For example, if they have expensive jewelry, designer clothing, or high-priced artwork, the property owner gets an appraisal for the items and adds a rider to their policy.
The riders give the property owner the appraised value for the items if they are stolen, lost, or damaged. The homeowner must file a police report if they believe the items were stolen to get full coverage through the rider. If the property was damaged due to a covered event, the rider gives them the appraised value for the items. They have the option to start a rider for each item that is of a higher-than-average value to maximize their protection and prevent a financial loss.
Do They Need an Additional Flood Policy?
If the condo is located in a designated flood zone, the condo owner is required by their lender to purchase an additional flood policy. A designated flood zone is an area where a body of water is located close to the property, and the area has a history of flooding. Since the property is at a greater risk of becoming damaged because of a flood, it is necessary to get additional protection since the condo insurance will not cover excessive risks of perils. The same is true for properties that are in earthquake zones.
Condo owners review the homes thoroughly until they find the best location and property design. When purchasing the condos, it is vital for the new owner to take out insurance policies that provide adequate coverage for the property itself and items the owner places inside it.
Standard condo insurance and a master policy provide the best protection for a condo. If the property is a vacation home and the owner wishes to rent it out, they will also need landlord’s insurance to cover any loss of income and specific liabilites. Condo owners review the policies to help them make sound choices about setting up protection for their property.