Condos are smaller homes that are a part of a larger building. Purchasing a condo could be a wonderful moment whether you’re moving there or you’re renting it out to earn a profit. There are risks to owning a condo and it's best to ensure that you have the right insurance for your home.
This article will help you learn about the best insurance for your condo. There are three states of condos: owner-occupant, rented and vacant condos.
Condo insurance is a combination of
- Liability (If you cause damage to someone, your insurance pays)
- Property (if you lose your game console, jewelry etc, insurance will covers depending on the circumstances)
- Additional Features such as emergency evacuation, condo protection etc.
Liability Insurance is universal insurance that everyone should have on anything. This type of insurance guarantees that if you accidentally injure or break someone’s possession liability will cover it. It goes with the saying “you break it you pay it!”, an example could be you broke someone’s TV and now you have to pay for it, and liability insurance would cover you or someone slips on your property and gets injured - liability insurance will also cover. It changes if you were to own a condo but you are moving out of it to a different home (but not sold) then it is considered a vacant condo.
The issue with vacant condos is that some clients do not notify the insurance to change the state of the condo. Vacant condos have a higher risk of damages because no one lives in the unit. An example is if a couple owns the condo and is moving to a different place then the risk changes. If the risk changes then the contract also changes, but it’s not that easy. In other words if there was damage in their property and they didn’t notify that they’re not in the home before they left then insurance will not cover. You should first notify the insurance first that you are moving to change the contract materials so you can guarantee the protection of the home while you’re away.
Vacant condos can become rented condos! If you’re looking to make a profit you can have your vacant home become a rented property. A few things will have to be considered. One of them being renovations and maintenance, if the sprinkler or pipes weren’t properly taken care of then it is ultimately the landlord’s fault. However if they were being properly cared for and the tenant breaks it then it is their insurance that will have to cover them.
Content coverage (or your own property)
Content coverage should be considered because you have expensive possessions in your home that could get damaged. To protect yourself content coverage has the role of being able to replace it or to partially compensate for it. This goes for any type of home or living. An example could be an expensive TV was broken and it was you that caused the accident, but depending on the accident the insurance could or not cover your TV. This coverage is quite subjective simply because some insurance companies will send someone over to the property to see if the accident was legitimate to prevent any scams or false claims. It is important to understand the term deductible as well. Let’s say you broke your TV and the insurance did want to cover it for $2000 but then there’s a $1000 deductible, which means it's a payment of $1000, think of the deductible as a punishment for breaking the TV.
As a rented condo this may apply to any of the items you choose to leave for your tenants, so things like beds, sofas, TV, microwave etc, This is especially important if you are doing a short term rental when you supply with furnitures as such where else a long term rental may not have them so your content may be minimal such as dish washer, refrigerator, oven etc you can get insurance for but depends on the insurance you talk with. Deductibles will always be considered with insurance so make sure you choose wisely on what gets included or covered. Most landlords want insurance for short term rentals because tenants don’t live there too long, and in long term rentals most landlords don’t include anything. In short term rentals if tenants break an appliance like a fridge on purpose you will not be covered because you can ask your tenants to compensate for the damage that has been caused. However if it was an accident there will most likely have an insurance person come in to check on the damage and see if the accident is really one before they give out a confirmed amount.
Your condo may add additional features such as emergency evacuation, condo protections and much more but it is completely up to the person who owns the whole building. This is a benefit for those who live in the condo and rely on these, otherwise you may have to pay extra as an occupant, but again depends on the condo owner. This will give you more ideas on how to look for a condo if you are living, renting or even vacant.
Liability insurance and content coverage are important! What makes them important is that they are always stress-free if you choose and consult wisely in what you want. Even if it’s complicated in the end you just have to insure yourself so you don’t have any claims against you. Anything can happen so it's best to keep yourself informed.There is a free quote you can fill out today! Remember There is Insurance For That...