Most people dream of buying a condominium, and some even get to make the purchase. As you celebrate that purchase, it is important to remember to take care of certain things like buying condo insurance.
There are times when things can go wrong, and you need insurance to step in and rescue the situation. Owning a unit among other condo owners is always a recipe for complications. Condo insurance caters to your needs in such circumstances. Condo insurance serves as a way to keep you away from any costs in case of an accident or incident. You can see how it is beneficial below.
There is normally master insurance that covers the entire complex, of which you and other condo owners pay a monthly fee. You may be covered, but it is not adequate to keep you safe and free from needing other policies.
The master insurance policy is there to take care of the building and common areas, not you condo specifically. In case the complex is destroyed by fire, it will pay for the construction of a new building. Everything inside your condo will however not be paid for. You are expected to take care of all fittings, fixtures, and even interior walls.
You will also find there is a need for liability protection. If there is an injury in the common area, it will kick in. You however should not expect it to help out if the incident is in your condo, or originating from your condo.
You need condo insurance also to cover personal property. If there is ever damage to your personal property, it will likely happen within your walls, where the master policy is ineffective. You need condo insurance to protect you against theft, damage and destruction of your personal property.
It also comes in handy in case the master policy generates a loss assessment and deductible. Sometimes, the master policy may have underinsured you, owners. In such cases, you will be expected to cover the additional costs. Your condo insurance will step in and cover your share of those costs.
The policy also covers for expenses insured as your condo is being repaired. If an event happens that needs you to stay elsewhere as your condo is being repaired, you would incur heavy costs if you did not have such a cover.
You will also see it being effective in promoting the spirit of community. There will be problems if one of you is ever sued by another for causing damages. But if you have this cover to cater for those costs, you will not feel strain, and it will be cover swiftly. The communal spirit will, therefore, be revived much faster.