Your home is the center of your life. It's where some of the most important events take place and where precious memories are made. It holds not only your favorite sentimental items, such as the blanket your grandmother knit you but also all the things you need to function.
It may be easy to forget the value of your belongings such as furniture, clothing, appliances, and electronics. But when something goes wrong, it's the first thing you think of.
Chances are, if you were to rent an apartment, you would remember to purchase renter's insurance. And if you were to purchase a single-family home, you would be required to have homeowner's insurance. But for those who live in condos, which type of policy would you need to protect your home and the important things inside it?
Condominium insurance is specifically designed to protect your assets and belongings from damage. Although the homeowner's association (HOA) at your complex most likely has its own policy, it won't cover anything within the walls of your home. HOA policies are only meant to cover commonly owned areas, the overall building, and to protect the HOA's assets.
In the event of a catastrophic event, the items inside your condo would not be protected, and you would be left having to pay out of pocket to rebuild the everyday items that make up your life. This is often referred to as "walls in" condo insurance coverage. It is a necessary component of any condo owner's financial plan.
In general, a condo insurance policy will cover most things inside of your condo in the event of a severe weather emergency. These types of events include fire, smoke, lightning, or a windstorm. The policy can also cover your home if it is damaged due to vandalism or other types of malicious mischief. Many policies even provide coverage if there is a sudden accidental discharge of water. The most common example of this is a pipe bursting in the walls of the building.
In addition to the belongings that may need to be replaced, condo insurance coverage usually contains provisions for the replacement of fixtures in the home. This can include carpeting, flooring, doors, light fixtures, toilets, showers, and bathtubs.
Most types of condo insurance will include a provision that protects your home in the event of theft. For this reason, it is important to keep an updated inventory of the items in your home and their approximate value.
Many policyholders find it useful to take a video of their home that clearly shows the items of value inside. This video can help spur your memory in the event of theft. In the aftermath of such a traumatic event, reviewing the video may remind you of objects that were taken that you did not notice right away. It is a good idea to upload this video to a trusted virtual space, such as a secured Cloud service.
Living without any type of condo insurance policy is a mistake. It is not enough to rely on the insurance policy your HOA carries. Without condo insurance coverage, you will need to draw on your own personal savings in the event of a catastrophic event or theft.
Some may think that their savings are enough to cover their losses if their condo is damaged. However, they often neglect to calculate the cost it would take to make even the most basic repairs, such as walls and flooring. Many often forget to account for the replacement of electronics, appliances, and clothing that may also have been ruined.
Your exact coverage needs will depend on the value of your condo, as well as the furniture, items, and fixtures inside. The best way to determine this is to speak with an insurance professional, who will walk you through plan options that work best for you.
At AFS&V insurance, there is a team of seasoned professionals ready to answer your questions and walk you through the process. Contact us today to learn more about coverage options and connect to an agent. You'll be glad you did!