Condo insurance, like homeowners insurance, helps replace covered personal property up to the policy limits. However, owning a condo is different from owning a house, and the process of insuring a condo is also different.
Many condo owners think their condominium association’s insurance will protect them in the event of a catastrophe. However, in most cases, the condo association’s policy only covers what is outside the walls of their condo and not personal belongings, nor does it cover other hazards.
What Does Condo Insurance Cover?
An insurance policy for your condo can cover damage and replacement of personal property, like furniture, clothing, electronics, and any item not affixed to the unit. Condo insurance can also cover plumbing fixtures, appliances, lighting, and other interior features.
A condo insurance policy can cover liability insurance in case someone is injured inside your home. Should someone slip and fall on the sidewalk outside the condo, or be hurt in a common area, the association’s liability insurance will cover it. However, liability associated with the interior of your condo is your responsibility.
Why Do You Need Condo Insurance in Lutz, Florida?
Florida law does not require condo owners to purchase condo insurance. However, many condo associations require owners to have insurance and be able to show that the policy meets certain minimum limits. If you have a mortgage, the lender may also require an insurance policy for your condo. Furthermore, it’s highly advisable that condo owners who rent out their condo have insurance.
What Should You Know About Condo Insurance?
Condo insurance policies can be customized to your needs and risk profile. Most policies come with these options:
Dwelling coverage. Your policy’s dwelling coverage generally includes damage to all items that are permanently affixed within your condo but not covered under your association’s policy. This can include elements such as walls, flooring, and countertops. Dwelling coverage can also cover any alterations or improvements you make up to covered limits of your policy..
Personal property. This provides coverage if your belongings are stolen or damaged, either while inside your condo or outside the premises. Personal property coverage includes a wide variety of items, including clothing, furniture, technology, and other home furnishings.
Loss assessment. Any damage to or within common areas is partly your responsibility as a condo owner. While the condo association should have an insurance policy, you may need to cover any costs that exceed its limits. Florida law requires your condo insurance policy to include at least $2,000 of loss assessment coverage, which can be used to pay for losses that exceed your association’s policy limits.
Personal liability. This provides coverage in the event you are sued, or a court judgment is made against you, because of an accident in your home or if you cause damage to someone else’s property.
Loss of use. If damage to your condo makes it uninhabitable, this coverage helps pay for lodging, food, and other loss-related expenses until repairs are made.
Additional coverage you might consider with condo insurance includes:
Golf cart liability and damage.
Water or sewer backup.
Pet or animal liability.
Law and ordinance violations.
Extra liability insurance.
Special Coverage A: Changes named peril coverage (limited to specific events) to open peril coverage (broader coverage).
Replacement Cost on Coverage C: Protects personal property and gives you the cost to replace it new, rather than the depreciated value.
Identity theft or identity recovery.
Specific valuables such as jewelry, artwork, and collectibles.
How Much Condo Insurance Do You Need?
Condo owners should start by taking into consideration the replacement value of all their personal property, and all the internal structural fixtures that may have to be replaced as a result of a catastrophe.
Secondly, don’t forget to account for upgrades and improvements to the condo that have been done over time.
Thirdly, assess your liability in the event someone has a tragic accident on your property.
At the ABC Dennis Insurance agency, we help you determine how much condo insurance you need, and whether additional coverages are beneficial.
ABC Dennis Insurance Agency
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides condo insurance for individuals, families, and businesses.
As an independent agency, we find the best coverage with the most competitive rates among multiple insurance companies. This is important because no insurance company can meet every insurance need. So, we shop multiple insurance carriers to find the coverage that best fits our customers’ every need.