Hi everyone and welcome to my insurance website.
You know I love surprises, but only if it’s a good surprise and I don’t want any of my clients getting a bad surprise and discover they did not have the right type or amount of insurance.
There are 5 important coverage’s that every Condominium owner needs to know.
If a major urban or wildfire destroys your home, you will need money to replace your Personal property. This includes all your home appliances, all of your furniture and all of your clothes, and everything else that you own.
The 2nd type of coverage is called Building Replacement. This is a type of property insurance that I discover about half of condo owners do not have enough financial protection for. The majority of Condo Associations make the owner responsible for replacing the interior building components after a fire or water loss and other covered accidents. This means the owner has to pay to rebuild the Kitchen Cabinets, Counter top, hard wood floors, pantry, and also the bathroom sink, shower, and floors. This also means paying for a new furnace and ducks, hot water heater, and air conditioner. Most of my clients have about $50,000 or more for Building Replacement, so make sure you have plenty of coverage so you’re not dipping into your savings after a fire.
The 3rd type of coverage you have with Condo Insurance is Loss of Use, which means the insurance company will pay your rent while your home is being cleaned or remodeled after a fire or other covered loss.
The 4th type of coverage is called Loss Assessment and I often find this coverage is missing or too low in many people’s policy. An example of how this important coverage can help you is if your clubhouse burned down and the Association’s board decided to make all the condo owners pay for building code upgrades which were not covered by insurance. If you add Loss Assessment coverage to your personal condo policy, your insurance carrier will pay this assessment for you. Nice.
The 5th and final coverage that you need to have in your condo policy is Personal Liability. Let’s say you were to accidentally destroy two homes adjacent to yours. You better have liability coverage because your neighbors and their insurance companies will point to you to pay the bill. I recommend a minimum of $500,000 and often$1,000,000 to protect my clients. Liability insurance also protects you if you have a dog and s/he bites someone.
In summary, It’s a great idea to take a video or pictures of all of your personal property and the interior building components and keep it in your safe deposit box at your bank.
Thank you for watching everyone, and please call or email me with any questions. I hope my Condominium insurance tip today, helps you down the road.