If you’re going to buy a condominium, condo insurance isn’t an option that that you can consider availing. It is mandatory as per law in each of the 50 states.
Apparently, condo insurance may appear very similar to home insurance since it covers your property, articles, and liabilities just like a regular home insurance policy. However, the way premiums of your condo insurance is determined is very different than regular home insurance policies.
1. You’ll have limited options
Though your homeowners’ association isn’t going to restrict you to only one company, they may ask you to get insured with one in it’s list. For instance, your homeowners may ask you to get your policy done from an A rated insurance company or the one that the others in the building have insurance from. Your HOA may also ask you to carry a particular amount of coverage in order to protect the interest of the other condo buyers within the apartment in case you sustain damages in your unit, and those carry over into other units too.2. Theft and other liabilities will increase
Just because now you’ll be sharing a building with other people, the insurance company will raise the premiums in order to cover for some common vulnerabilities. Just sharing a building with other residents increases your exposure to theft and other vandalism. It’s not only you but others too, who will have access to your building. And those people won’t always be the friendly ones. It’s not uncommon for burglars to look for open doors in condominiums. Plus, you’ll have a higher exposure to liability. Any accident you face in your condo, like a fire or flood, will affect your neighboring condos somehow.3. Facilities and maintenance will reduce the costs
You may reduce the insurance premiums by buying a condo that is situated in a well-managed building. If you building is monitored by security personnel and under video surveillance 27*7, the chances of theft and other vandalism decrease. You can further reduce your insurance premiums by choosing a gated community with undercover parking. As long as liability is concerned, regular maintenance and inspection of your building will reduce risks propositions too.4. Certain locations will increase
Apart from the condo you’re living in, the area where it’s situated is of much significance. Your insurance costs will go down if your entrance is on the inside of the building than on the external walls. Having a condo situated on upper floors are more beneficial as burglars are more likely to strike on the lower floors. Further, if the area the building located in is exposed to floods, the lower units will face the hit first.Blog Category