by Arlene Copeland

Created on: November 26, 2008   Last Updated: January 10, 2009

More and more people are waking up to the need for condo insurance. It is estimated that the number of condo owners who own personal condominium insurance policies increases every year and Insurance advisers aim for 95% of condos to be covered by personal insurance policies by the end of the decade. In order to be fully protected, condo owners need to have two different types of cover; a master policy provided by the association and their own personal condo insurance. The main thing condo owners have to be aware of is what the association's insurance covers. By knowing what is covered, the condo owner can insure their condo with the right level of insurance saving money and increasing security.

While the condominium association insurance covers the building, it does not insure what is on the inside. Personal condo insurance covers the interior of the condo as well as any personal belongings inside. Every condo is different and state laws vary but generally the condo owner is responsible for insuring everything beyond the exterior walls, so not having a good condo insurance policy could be financially devastating.

The insurance provided by an association usually does not cover interior walls, fixtures and fittings, personal property and exposures of liability. In practice this means that the association is not liable for any claims arising from burglary, water damage, fire and smoke damage, accidental damage and damage caused by faulty appliances, heating etc. What the association's insurance does cover is damage to the building the condo unit is within. For this reason, condo insurance is not as extensive, or as expensive as full homeowner insurance but it is equally as important.

Personal condo insurance protects the condo owner from a huge number of threats that could otherwise devastate the property. The average condo insurance policy safeguards the owner against damage caused by fire and smoke, vandalism (to the inside of the property), natural disaster and weather related damage such as that caused by wind, rain and hail, and also covers against burglary and theft. Another crucial aspect of personal condo insurance is the protection it provides should someone become injured or has damage to their own personal property while they are inside the condominium.

Personal property kept inside a condo is also covered by many condo insurance policies. Often these policies extend their cover to personal belongings even when they are taken outside of the condo. It is important to ensure that the condo insurance policy chosen has the right level of cover, if you are a condo owner seeking insurance then make sure you inform your insurance company of the type of property you have within the condo to make sure you are covered for every eventuality.

Personal condo insurance does not have to be expensive! There are some fantastic policies tailor-made for condo owners who need a very specific form of insurance that compliments the insurance held by the condominium association. By protecting the condo against damage and loss the condo owner can rest assured that they are not going to lose their home or their money if the worst should happen. No one likes to consider their property or possessions under threat but it is a huge relief to know that your condo and everything within it have all the protection they need.

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