A condominium allows you to live independently yet enjoy fewer hassles than if you lived in a house. All condo unit owners need insurance, and the types of provisions vary with each insurer. As the owner of your unit, insure your living space and the personal contents within. Consider the general terms of condo insurance and the specific policies available to you as the owner.

Understanding Condo Insurance
Insuring a condo is not similar to homeowner’s insurance because the residences are divided into multiple units. Insuring the entire building is not a requirement; instead, you have to insure your individual portion of the property.

Every condo owner is obligated to pay association fees under a master policy. The unit’s structural components, such as walls, floors and appliances, are covered minus personal belongings and renovations. This policy has two main components: the all-in or single-unit policy that covers appliances along with plumbing and electrical systems and the bare walls-in policy that covers bare walls and structures only.

Before buying insurance, understand the provisions covered under the master insurance policy. Then, determine the additional coverage you need to protect your condo.

Coverage Options
Insurance covers you for disasters that affect your condo unexpectedly. Obtaining the right amount of coverage starts with estimating the costs of potential damages, losses or thefts. In addition, estimate the value of your personal items by creating an inventory list. Maintain this list for when you plan to file a claim.

Insuring personal property is the primary responsibility for condo dwellers. Your master policy typically does not include protection for clothing and furniture, so you must obtain personal property coverage.

Liability insurance is available to those who operate businesses within their condos. This type of insurance protects owners who are responsible for visitors coming onto the property and becoming injured. Liability coverage prevents you from having to pay out-of-pocket expenses for accidents that occur in or around your unit.

Many condo protection policies cover natural disasters, including hurricanes and tornadoes. However, mold and flooding are not covered and require the purchases of separate policies. Buy a separate policy to cover special assessment fees that occur unexpectedly.

There are different discounts available to condo owners. Save on your insurance based on the age of your condo, the condition of the roof and the installation of an alarm security system. Installing preventative features is the main way to reduce the cost of your insurance premium.