Condo insurance is for anyone who purchases a condominium and wants to protect what he or she owns from theft, natural disaster, or mishaps in the unit purchased or in adjacent units. Condominiums generally have insurance included in the home-owner’s association fees that cover “walls out.” The average condo owner, however, may want to purchase additional insurance for “walls in”, which insures against loss of personal property, such as clothing, electronics, expensive countertops, etc. It does not cover fixtures, flooring, or installations, such as dish washers or trash compactors. It may or may not be worth the extra expense to insure property that is unlikely to be stolen or is practically impervious to disaster. That should be discussed before taking out a policy and the cost weighed against the magnitude of the loss.
The different types of coverage available addresses whether the property owner prefers replacement, which provides coverage to replace items lost with a new item of equal value, or cash value, which replaces the item lost minus the depreciation. Coverage for all contents versus specific ones should be also be considered. If there are gaps between association coverage and what the homeowner needs to insure, the insurance agent should be aware so he or she can advise how to bridge the gap.
The benefits of having appropriate condo insurance cannot be overstated. Naturally, we cannot insure against everything, but it certainly is calming when the unthinkable happens, and insurance is there to protect against a loss, even one that is highly unlikely to occur. Policy holders might want to take pictures of personal property, especially valuable items, and keep in a safe place away from the premises, such as a safe deposit box. Keeping pictures on electronic devices can also be a backup, realizing they may be destroyed as well. Give a set to friends or relatives for extra peace of mind.