Condo buyers must review options for protecting their unit and avoiding the repercussions of liabilities. It is necessary to conduct a full risk assessment with an insurance agent to determine what risks could emerge when owning a condo.
If the property is near the water, the owner will need additional policies to protect against perils. Protecting the property fully helps the owner get the most out of their investment and avoid financial losses.
What Does the Master Policy Cover?
The master condo policy covers the exterior of the condo, such as the roofing and the exterior walls. It covers all communal areas that all residents use at their leisure. All installations connecting to the exterior of the condo are included in the coverage. All condo owners must pay for a master policy to provide maximum coverage for their condo. Condo owners can learn more about master policies by reviewing the current policies available from Garrity Insurance right now.
Standard Condo Coverage for the Owner
The standard condo insurance covers all interior walls and items that are inside the condo. This includes the condo owner’s personal belongings and appliances in the unit. The condo owner can review the insurance for specifics, but the policies typically cover any section of the condo on the inside, such as the bare walls, flooring, and ceilings. The policies provide coverage for liabilities such as accidents that could happen when visitors are inside the condo. The owners can file an insurance claim if damage happens or if any items are stolen, damaged, or lost. Some policies may require a rider for more expensive items that exceed the maximum coverage limits.
Paying Dues as Expected
Paying dues is expected of all condo owners, and they must submit these payments according to the schedule. The dues cover the cost of any damage that happens to communal areas, and the fees cover maintenance for these areas, too. When buying a condo, it’s necessary to find out what the fees are and how often the owners must pay them. Typically, the dues are paid once a year, but if substantial damage happens, there could be changes or increases in the costs.
What Does the Owner Need to Cover?
With a condo, the owner must cover their condo with proper insurance. If the condo is in a flood zone, the owners may need a supplemental flood policy to cover the additional risks. Standard condo policies do not cover the property fully if a flood happens, and the owner could suffer a financial loss if they don’t have proper coverage. The policy may include water remediation services for the property, too, and this could help the property owner reduce additional risks to their property.
Liabilities that Condo Owners Face
A condo owner needs proper coverage to reduce the potential for a lawsuit if a friend or loved one becomes injured while on the property. If they have a dog, there is a risk that the dog would bite a visitor or another homeowner. When reviewing these liabilities, the property owner must consider what kind of accidents could happen on their property that could lead to injuries and a legal claim.
Each of these liabilities must be included in their policies and provide the owner with proper coverage. If they have liability coverage, the condo owner can provide an insurance claim for individuals that are injured inside their condo. The insurance pays for medical treatment and provides compensation for lost wages and other financial expenses.
Who is Responsible for Visitor Injuries?
When visitors are injured on the property, several factors come into play. First, the property owners and the condo association must consider if the individual was on the property legally. If the individual was trespassing, they will not receive any coverage for their injuries because they entered the property without permission. If the individual was in the communal area, the condo association must provide coverage for injuries through the master policy. If the individual was injured inside the condo, the condo owner must file an insurance claim through their standard condo policy or any supplemental liability coverage they have.
When Does the Condo Owner Need Insurance?
The condo owner will need to purchase their condo insurance before the property closing. If the property is in a flood zone, they will need to purchase the additional policy. All fees for the master condo insurance must be paid ahead of time, too. The buyer must have all their insurance policies in order before they attend the closing. If they are financing the condo through a lender, the individual must purchase and maintain all policies according to their mortgage contract.
Discounts on Premiums
Some insurers may provide discounts on premiums after one year and if the owner hasn’t filed many insurance claims throughout the year. If there haven’t been any accidents on the property, this could give them some discounts.
If the owner adds their condo insurance and other insurance policies into an umbrella policy, they could get some discounts from the multiple policies.
Condo owners must explore all insurance requirements for their properties. If they live in the condo year-round, the individual can use one policy to cover the property. However, if they use the condo as a vacation home, the individual may need unoccupied dwelling insurance, too. The policies provide protection for the property itself and liabilities that could emerge at any time that the property is damaged or the owner allows visitors into their home.
Conducting a risk assessment could help them determine any additional risks they may face, such as if they are a pet owner. The owner must add possible liabilities to their policies to avoid a financial loss. Reviewing the insurance policies shows the owner what coverage they have available when needed.
