What should you know about insuring your condo?

What do you need to know about insuring your condo?

Condos are perfect for anyone looking to move away from renting without the hassle of keeping up with a lawn or other maintenance issues that accompany buying a house. They are also ideal for those looking to downsize or retire but who want to continue to own their own residence. Whatever the reason, it's important to understand that insuring a condo can be different than insuring a home. Property Casualty 360 offers an article on condominium insurance for potential condo unit owners to read.

Consider your property coverage
Unlike a house, there is usually an association and the corresponding by-laws, as well as state insurance laws, that govern which party—the association or unit owner—is financially responsible for various parts of the unit and building, and to what standards. For example, which party is responsible for structural and common areas of the building, such as the foundation, support structure, roof, siding, common hallways, plumbing, etc. versus interior unit elements, such as appliances, fixtures, flooring.

"Information is key for the policyholder."

More often than not, the unit owner's responsibility is for the unit from the framing members in. Usually, the terms "walls out" or "walls in" are used to designate what the association covers and what the unit owner is responsible for. Finding out this information is key for the policyholder so that the insurance agent (or carrier) can determine exactly what will need to be included in the coverage.

What about a loss assessment?
This policy is an additional form of coverage that outlines the amount the condo association (comprised of everyone living in the condos) would charge the unit owner should damage occur to property owned by all members as whole, such as a neighborhood clubhouse or pool. Unit buyers could check with the condominium association and discuss it with their insurance agent to see what additional coverage, if any, might be needed.

As the leading provider of web-based property valuation solutions, e2Value can assist you with all of your Insurance-to-Value (ITV) and collateral value monitoring needs. Whether you are looking for valuations for high-value homes, Mainstreet® homes, condos, co-ops, commercial properties, manufactured homes, log cabins, or farms and ranches, our patented estimator can quickly calculate the cost of replacing a residential, commercial or farm structure and provide you with a fast, cost-effective and accurate replacement cost valuation.