Condo Insurance: Guarding Against Coverage Gaps

Don't Let Unknown Gaps In Your Policy Prevent You From Being Properly Insured

By Meha Ahmad, Insuranceagents.com Staff Writer

If you live in a condominium, you should know that your condo insurance may have coverage gaps. Some unit owners tend to believe that they are only responsible for paying condo association fees, which include insurance coverage. That’s simply not true! Your condo association insurance policy has coverage gaps, and you need to discover where they before you have to learn the hard way, like when your insurer rejects your claim. If you want to save some money on your premium, compare condo insurance quotes using our quick online comparison form.

Strangely enough, if you want to find out exactly where the coverage gaps are in your condo insurance policy, your condo insurance policy is not where you should look. Instead, look to your association documents. Under a section titled “Declarations” or “Operating Policies,” which describes which parts of your unit property the association covers.

Property that is usually excluded from association coverage:

Property that is usually excluded by the masters insurance policy and condo association dues—and which you need to get included in a proper condo insurance policy include:

• Furniture: Sofas, dining set, rugs, drapes, wallcoverings
• Electronics: Television(s), mp3, computer/laptop,
• Any structural improvements you AND all previous unit owners have made
• Interior walls, cabinets, built-in and personal appliances, plumbing, light fixtures, tub/toilets, your wardrobe
• Floor: Carpet, floor tile, hardwood
• Other personal items: Collections, antiques, jewelry, heirlooms, etc.

Tips to get proper condo insurance coverage:

• Calculate how much it would cost to replace every single thing you are responsible for—that includes every item you own as well as everything inside the condo that isn’t the bare walls. Buy a limit on your condo insurance policy that is high enough that you can comfortably replace everything you own in the event of total loss.
• Option Replacement Cost coverage—including this coverage in your condo insurance policy guarantees that when you file a claim, the new cost is what will be paid by your insurer and not a depreciated or outdated value.
• Flood insurance. Condo insurance policies typically do not include flood insurance. Talk to your insurance agent about purchasing this additional coverage for your condo insurance policy. 

Do not remain under the false impression that your master insurance policy and the dues you pay your condo association offers you proper and full condo insurance coverage. The only way to get full coverage and protect your home is to take out a separate condo insurance policy and customize it—with your homeowners insurance agent—to fit your needs.

Published: Friday 19th June 2009