Your condo allows you to share in the amenities of community-living while enjoying the benefits of ownership. For many, it is the best of both worlds, with maintenance and other expenses built into the association dues. Although you may have less upkeep than a traditional homeowner, there are still risks not covered by your association’s master insurance policy. At Binford Insurance, we can help you find personal condo insurance coverage that picks up where your community policy leaves off, extending protection to the inside of your unit, the things you own, and your potential liability.
Private Condo Insurance vs. Your Master Policy
For most condo owners, being fully insured means having two different types of insurance coverage. The first is the condo association’s master policy, which covers damages and liabilities related to shared community spaces, such as the pool, hallways, elevator, or lobby. The master policy is also likely to cover damages to your unit, albeit limited. Depending on the terms of coverage, the master policy may only pay for the reconstruction or repair of exterior walls and windows, or it may also extend to certain interior walls, finishes, and fixtures. From there, it is up to you to find personal coverage for your condo and the things inside it. If you have too little coverage or perhaps have gaps between your policies, you may face extensive out-of-pocket costs after a damaging event, such as a building fire.
Understanding Your Condo Insurance
A typical condo insurance policy will include several different coverage types. Each type offers different protections against the various risks you face as a condo-owner. Depending on the terms of your policy, your coverage may extend to damages caused by specific named perils, or it may include broader protections with exceptions only for excluded events. Either way, your policy is likely to protect you from damages caused by things like:
- Fire
- Smoke
- Wind
- Hail
- And more
Note that certain types of events, such as earthquakes, sewer backups, and floods, are almost never covered under standard condo insurance coverage. We recommend talking with your agent here at Binford Insurance to learn about endorsements and stand-alone policies that can help you broaden your coverage against these types of risks.
Types of Condo Coverage
Your condo insurance may include the following types of coverage:
Structural Coverage
Structural coverage needs vary between condo owners depending on the limitations of coverage in each association’s master policy. Generally, this section may outline protection for interior walls, trim, cabinets, light fixtures, finishes, flooring, built-ins, and more.
Personal Property Insurance
The personal property section outlines protection for the things you own, whether they are damaged in your condo or elsewhere, such as while traveling. We recommend taking inventory of your belongings, updating it regularly, and storing it somewhere safe. This inventory can help you better assess your ongoing personal property coverage needs and be a valuable resource if you need to file a claim. In addition, a home inventory can help you determine how much additional coverage you may need to schedule for high-value items like jewelry and fine art, which may otherwise be subject to coverage limitations under your policy.
Note that standard condo insurance may only cover your personal property for its actual cash value (ACV). This means you will only receive compensation for the loss of your items based on their depreciated value. Considering how much it would cost to replace your items with new belongings, ACV property insurance could leave you with gaps in your coverage and large out-of-pocket costs after a covered event. Instead, talk with your agent about insuring your belongings for their full replacement value, which reimburses you for the cost of new items (minus your deductible).
Displacement Coverage
Imagine being displaced from your condo unexpectedly due to a sudden, devastating event. Whether a fire destroys your unit, or a tree falls through the middle of your bedroom, it can be costly to find temporary housing while your condo is repaired or rebuilt. With displacement coverage, you can continue paying your mortgage, fees, and taxes without being burdened by the additional living expenses associated with finding temporary housing.
Liability Coverage
Liability potential follows you everywhere you and the members of your household may go. If you cause an accidental injury or third-party property damages, liability insurance can help protect you against the high cost of a lawsuit. Likewise, your coverage can protect you if someone is injured while visiting your condo. Generally, coverage includes the cost of legal fees, medical bills, court costs, judgments, and out-of-court settlements up to the limits of your policy. If your liability limits are too low, you may be responsible for paying excess damages out-of-pocket. We recommend choosing high condo-owners liability insurance to better protect your income and assets against loss.
Medical Payments
If a guest is injured inside your condo, you may or may not be liable for the incident. Either way, medical payments coverage can help pay for medical bills regardless of fault. Though it does not remove your potential liability, this coverage can help pay for an emergency room bill or health insurance deductible, which could be enough to prevent litigation.
Loss Assessments
Another risk as a condo owner is the potential for shared community damages and liabilities. If a loss is not fully covered by the association’s master policy, the remaining damages may be divided and assessed against unit owners. With loss assessment coverage, your personal condo insurance can help shield you against these types of unexpected financial losses.
Indianapolis Condo Insurance Quote
If you own a condo in the greater Indianapolis area, let Binford Insurance help you find coverage that fits your needs. We are an independent agency with a commitment to finding our customers quality coverage at affordable, competitive rates. We will explore ways to help you maximize the value of your policy and search for valuable discounts to increase your savings.
For more information or to request your free condo insurance quote, contact our office today. We look forward to serving you soon.
