by Mary Vance

Created on: November 26, 2008

Condo Insurance is often overlooked by first time condo owners, who

assume they are covered by the condominium associations policy.

Associations carry a "Master Policy", that covers common areas

such as: hallways, walkways, roof, basement, elevators, and some

other common usage areas.

Some associations also carry "Single entity" policies, that cover

items such as carpet/flooring, cabinets, and appliances.

When purchasing your condo you should carefully read your

associations master policy, and ask for a copy.

Take your copy with you when you go to purchase your condo

insurance. Your agent will be better able to advise you on the

coverage you will need. Choosing the same insurance carrier

used by your condominium association may sometimes give

you a lower rate. Compare several carriers prices before choosing

your condo insurance. Condo insurance is usually called a HO-6

policy. It is somewhat like renters insurance in that you will need

some of the same coverages to protect your personal assets.

Condo insurance should include coverage for: *Fire, *Lightning,

*Smoke, *Vandalism, *Theft, *Damage from leaking appliances

such as dishwashers, refrigerators, hot water heaters,etc,

*Personal injury liability, *Electrical power surges, *Damages

from vehicles, including falling aircraft, and *Personal property

loss.

Making upgrades to flooring, appliances, cabinets, etc, should

be included in your condo insurance policy. Even if your association's

policy carries "Single entity" coverage, they will only replace the

loss with the type of products you had at the time of your condo's

purchase.

Other things to consider when purchasing your condo insurance

are:* Deductible amount. Choosing a high deductible gives you

a lower insurance rate, but in the event you make a claim you will

pay a higher up front cost before the insurance kicks in their share.

*Loss of use option. This option pays for your housing expenses in

the event your unit is uninhabitable for a time.

*Floaters. If you own expensive jewelry, artwork, computers, etc,

you will need to purchase a floater for your policy.

*Cash value or replacement value. With "cash value", you receive

the cash value of the lost item minus the depreciation.

With "replacement value" you are paid what the actual cost would

be to replace the item.

Condo insurance is just as important in protecting your assets as

is homeowners insurance for single dwelling homes. Less than 50%

of condo owners carry enough insurance to fully protect their

personal belongings, or have enough personal injury coverage

to protect their assets in the event of a personal injury claim.

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