Condominium Insurance

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Full condo coverage

Condominium insurance, is a contract between the owner of a condominium unit and an insurance company, with the purpose of providing financial protection against various risks that may affect both the internal structure of the unit and the personal property of the insured. This policy complements the master policy of the condominium association, which covers the common areas of the building, and acts as a safeguard for aspects not covered by said policy.

The main coverages include:

Interior structure of the unit - Interior structure coverage

  • Covers physical damage to the internal structure of the unit, including walls, ceilings, floors and permanent improvements made by the owner. Protects against risks such as fire, vandalism and storms. It is crucial to know the parts of the unit covered by the master policy to avoid gaps in coverage.

Personal liability

  • Protects the owner from being held legally responsible for damage or injury to third parties within their unit or in incidents off the property. Covers legal costs and compensation arising from lawsuits.

Personal property

  • Covers loss and damage to personal property within the unit, such as furniture, appliances, and clothing, due to covered events such as theft, fire, and water damage (excluding flooding). It is advisable to maintain a detailed inventory and adequate documentation to facilitate the claim process.

Loss of use

  • Covers housing and other living expenses if the unit is uninhabitable due to covered damage.

Additional living expenses

  • Covers additional living expenses if the unit becomes uninhabitable due to a covered event, such as temporary lodging and food.

Association assessment coverage

  • Covers the amount the owner must pay for special assessments related to damage to common areas.

Medical payments to others

  • Cover medical costs for minor injuries to a guest within the unit, regardless of the fault of the accident.

Additional Considerations:

Flood

  • Since standard condo insurance policies typically do not cover flood damage, it is essential to consider an additional flood insurance policy.

Earthquakes

  • Similar to floods, earthquakes are not covered by standard condominium insurance policies. Damage to the internal structure of the unit and personal property caused by earthquakes requires a specific policy.

Insured values

  • It is crucial to regularly evaluate the value of the unit to ensure that coverage is adequate in the event of a loss, considering inflation and improvements made to the unit.

Condo association master policy

  • It is critical to understand the extent of coverage provided by the master policy to ensure that the HO-6 policy adequately covers any gaps in protection.

*It is important to keep in mind that the terms and conditions of the insurance companies may vary for each coverage. Therefore, it is essential to review carefully to fully understand the extension and any exclusions that may apply.