Understanding Insurance Requirements for a Condo

Many people buy condos or apartments, opposed to freestanding homes. Thus, the type of homeowner’s insurance needed will likely prove very specific. When reviewing policy options, make sure you get homeowner’s insurance for every penny of the value of your condo. Here’s how to do so.

Homeowners Insurance Requirements and Options 

When you buy a condo (opposed to renting one), you’ll take on an entirely new degree of responsibility for the property. You’ll now likely need to insure the full property. Indeed, in most cases, your realtor will require you to get such coverage. 

The coverage your policy can include will vary. However, it can usually contain: 

• Building Property Insurance: If the condo’s structure sustains damage, then your policy might pay for repairs. This coverage will likely handle damage from fires, weather, theft and other unavoidable problem. 

• Contents Coverage: This coverage will extend to your personal belongings. it might insure everything from furniture to electronics. Your policy might offer either cash value or replacement cost coverage. The replacement cost will pay for the full cost of the lost item. Actual cash value coverage will only pay the depreciated value of the lost item. Let your insurance agent advise you on which choice is best for you. 

• Liability Coverage: Your negligence might cause a guest to sustain injuries or property damage in your home. If the damage was your fault, then this coverage might help you pay for the losses.