Owning a condo can often be better than owning a house. You don’t have things like exterior maintenance to worry about, but you still have plenty of the perks and benefits of owning your own property.
When you own a condo unit, you need to be sure you have adequate insurance protection. Your condo unit owner's policy most likely picks up structural coverage where the association’s policy leaves off. Associations can all have different requirements of the residents, that are written in their specific Association’s Bylaws. Without careful consideration, you could be left with an uncovered loss if the association's policy does not respond as you had planned.
We strongly recommend getting a copy of your condo association’s bylaws and having your agent review them to determine your responsibility for structural coverage in the event of a loss.
Items to consider carrying on your policy:
1) Special Form (Open peril coverage) on the coverage A (Dwelling) on the policy.
2) Special Form (Open peril coverage) on the coverage C (Personal Property) on the policy.
3) Ordinance or Law Coverage at max limit available. This is a very important coverage that helps you meet the new codes or ordinances set in place after the unit was originally built. This premium increase is very minimal for this coverage gap.
4) Loss assessment at the max available on the policy. This helps to pay your portion of a loss deemed to be the responsibility of the association’s residents. This can also help to pay the association's policy deductible if needed on a structural loss.
5) Water and sewer backup coverage-This adds coverage for a backup though the sewer or drain. It covers damage to your structural unit and the property damaged by the loss, up to the limit you have selected. Note- If there is a loss by the association for this type of damage, you need to have this coverage for your loss assessment coverage to kick in for your portion of the loss. Please see loss assessment coverage in d.