When a person buys a condo, they automatically own anything that is inside of it. The space upon which the building sits and its entire exterior are owned by the HOA or condominium association. So, the outer parts and the roof are all the responsibility of the HOA and are thus assumed to be properly insured. Those who own condos are directly responsible for all the plumbing, appliances, and items within being suitably insured. Usually, homeowner’s insurance would be a bit of overkill in these situations. However, the typical renter’s insurance might very well be insufficient… This is exactly why condo insurance came into being. It provides the happy medium for protection for those who are condo owners/dwellers.
Condominium insurance is not too different from renter’s insurance- it will not provide coverage to the entire structure of the home as would homeowner’s insurance. But, it does give more coverage than one enjoys with renter’s insurance. Those who own condos frequently need to buy more protection to help know and be assured that whatever may not be covered under their HOA’s policy is fully protected. The main point for a condo owner is that the amount of coverage they need is to be determined in conjunction with a full understanding of the policy coverage of the HOA. Knowledge is power!
Condominium associations provide two kinds of coverage: They are designated as “single unit” and “bare walls.” The single unit kind includes the outer structure of the condo and specified items within the condo unit. A single unit policy can have under its umbrella such things as appliances, plumbing runs, cabinets, and even the floors. On the other hand, bare walls coverage is what the name implies: It simply covers the unit’s outer structure leaving the owner fully responsible for that which lies within. Obviously this might be attractive as it is less costly, but the other option provides much greater peace of mind.
Again, it is of paramount importance for an owner of a condo to grasp exactly what their HOA’s policy covers in order to come up with the proper and correct amount of coverage they need for their home. Sometimes an owner may wish to have supplemental coverage, perhaps covering the plumbing for example, in order to alleviate the many headaches one may encounter in the adventure of being a home owner. As always, insurance is what can give one peace of mind and a far less stressful experience of being a homeowner. Study your HOA’s policy to come up with the most appropriate coverage you will need. It is highly recommended to enlist the help of your insurance agent in this endeavor- after all he or she is the expert!