My condo association provides insurance for our building. Do I need any other insurance?
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Asked August 19, 2013
Most condominiums have two specific types of coverage: one for the owner of the building, and the other for the tenants or condo owners. In buildings where the owner of the condo sublets the unit, a third type of insurance comes into play, called renters insurance. For most purposes, your insurance and the building owner's coverage work independently to provide you both with the most comprehensive coverage.
The Condo Association needs insurance on the building to cover liability concerns in public areas. This includes walkways, corridors, stairs, and the grounds the building sits on. Liability insurance protects the Condo Association against claims for damages and injuries. The Association also has an obligation to protect you against damages such as a busted water pipe, problems with the wiring, or other claims resulting from the building itself. Typically, the Association is responsible for everything from the surface of the walls outward, excluding any portions that are specifically listed as the condo owner's.
The condo owner needs two type of insurance: liability and personal property insurance. The liability insurance is similar to the coverage used by the condo association, and covers damages or injuries which occur inside your condo or in other areas which as specifically listed as your responsibility. Personal property insurance protects that things you own, from your wardrobe and jewelry to your washer and dryer. Your personal property would be best protected if you create a home inventory that can be given to the insurance company to itemize your belongings and their values.
In addition to liability and personal property, a condo insurance policy will also provide you with loss of use coverage. If, for example, your condo is damaged by a falling tree and you are unable to cook in your kitchen for a time, the loss of use coverage would pay for your meals away from home. Loss of use can include total loss of condo or loss of any specific portion. Be sure to save all of your receipts and jot a quick note on each one describing how it pertains to your loss of use claim.
Answered August 19, 2013 by Anonymous