Condominium Insurance Information
What is Condominium/Townhome insurance?
Condominium insurance is similar to homeowners insurance but is designed for the specific needs of condo living. Many families choose condos because of the convenience of on-site maintenance and access to community amenities. In this environment, the main structures of all buildings and common areas are covered by an insurance policy held by the condo association. However, a personal condo insurance policy may cover property damage and liability risks of the unit owner.
Who benefits from Condominium/Townhome insurance?
Condo insurance is beneficial for all condo owners as well their visitors. In fact, most mortgage companies require condo owners to purchase a policy for the duration of their loan. Condo insurance may cover damaged, lost or stolen property due to fire, theft or natural disaster. This protection could extend to interior furnishings, including walls, flooring, ceilings, appliances and fixtures.
In addition, this type of policy could cover you against liability claims. If you are found liable for a visitor’s injury, condo insurance could cover associated medical expenses and/or legal fees.
What kind of Coverage do you need? Here are the 4 Basic Coverages on a Condo/Townhome Policy
The HOA by-laws of most condominium and townhome associations dictate the HOA insurance policy replace the structure in the event of a loss. This means that policy replaced the foundation, walls, interior pipes and drains, roof and common areas. The unit owner is responsible to replace 'from the drywall inward'. This can include the drywall, all fixtures, flooring , cabinets, sinks, tubs, toilets, countertops. In otherwords everything ATTACHED to the interior of the condo. This translates to 'building coverage' on a unit owners insurance policy. You need to make sure the policy has enough coverage according to current labor and material costs in your zipcode. The necessary amount of condo insurance largely depends on the value of your possessions. By determining how much it would cost to replace your possessions, you can estimate the policy size that would be appropriate for your individual needs.
This coverage is intended to replace all the items in the condo that AREN'T attached such as appliances, furniture, dishes, clothing, home decor, medicines, sporting equipment etc. Make sure your policy includes 'replacement value' for your personal items as some policies will replace at ACV (actual cash value or depreciated value)
What if someone were to get injured while in your home? Or who would pay to repair damage to another unit if a fire started in your unit and spread to other units? Liability coverage is essential to have on any type of home policy whether it be a renters policy, homeowners policy or Condo/Townhome policy.
If an insurance claim is submitted on the master HOA insurance AND:
- the policy does not have enough coverage to repair or replace the damage
- you are 'assessed' your prorated portion of the HOA insurance deductible
Only the 2 types of losses listed above will apply. Other loss assessments such as those due to a maintenance assessment would not be paid under this coverage.
There are other optional coverages you can purchase such as : sewer & drain, jewelry floater and loss of use.
Call Us Today to learn more about protecting your home with condominium insurance. Denver West Insurance Brokers is located on the west side of Denver in Golden CO. Our agents are standing by to recieve your call and answer additional questions your might have regarding the purchase of a condominium/townhome policy.