Purchasing a condo can be a great long-term investment. Since owning a condo is such a big investment, it is important that you make sure that it is properly covered by insurance. Getting a condo insurance policy in place is a great option as it will provide you with a variety of types of coverage.
One of the main advantages of a condo insurance policy is that it will provide you with coverage for the property. If the condo building happens to be damaged by a fire or storm, your condo coverage will provide you with coverage necessary to either repair or replace the condo. In situations in which it is completely destroyed, your condo loan lender will likely use the proceeds to pay off the outstanding balance on the loan.
Your insurance policy on your condo will also provide you with coverage for your personal property. If your condo is damaged and you incur a loss to your personal property, such as clothes or furniture, you will receive reimbursement up to the policy coverage level. This will also provide you with coverage for vandalism or theft. However, if you have expensive collectibles or jewelry you may need an additional rider to your policy.
When you own a condo you are taking on liability every time you have a guest into your home. Since you could be found liable if someone is injured in your property, you should have liability insurance protection in place. A full condo policy will provide you with the coverage that you need in the event you are found liable for an accident.
While it would always be a good idea to have a full insurance policy on your condo, it is also likely a requirement of a variety of different parties. Most likely you will be required by your condo association and mortgage lender to have a policy in place at all times. If you are not in compliance with this, you could be found in default and have to pay additional fees until you are back in compliance.