Getting condominium owner’s insurance is a slightly complex procedure because of the division of property that is always the case with condo owners. Condominium owners do not own the entire complex, instead they own a unit of the condo, and the remaining part of the complex unit is shared as an association. A Condo owner/Renter Insurance covers against theft, fire, smoke, vandalism, rain or hail and pipe freezing.
Condo owner/Renter Insurance is important for both the condo owner and the tenant because they all have personal shares in the property. Condo owner/Renter Insurance covers property and protects from legal liability. However, Condo owner/Renter Insurance is different because the properties involved for both parties differ. A renter’s insurance covers personal property against damage, theft or from accidents in the condo. A renter’s insurance policy protects personal belongings in which case it replaces stolen or missing property and repairs damaged property. In cases of a possible displacement, a renter’s insurance provides alternative accommodation for the tenant. Renter’s insurance will also cover for any legal fee a tenant is liable to as a result of suing from third parties regarding a mishap on the property.
Where a renter’s insurance covers the personal property of the renter, a condo insurance covers the insides of the condo, cabinets, and bathrooms fixtures. A condo owner insurance policy covers everything inside the four corners of a single unit. Given the complex nature of condominiums in general, owners of multistory condos should consider abutting floors and ceilings, the pool area, hallways and other exterior units when drawing the terms of the insurance cover. A Condo owner/Renter Insurance policy should cover for both content and structural items. Content items include furniture, area rugs, and jewelry, which in most cases belong to the renter whereas structural items include floors, cabinets, and lighting and counter tops, which belong to the condo owner.
What does Condo owner/Renter Insurance cover?
- Personal belongings and theft. The insurance cover protects property even when the owners are away.
- Apart from protecting the tenant’s property, Condo owner/Renter Insurance cover also covers personal belongings of guests visiting the premises.
- In cases of extreme weather damage, the insurance covers temporary housing for the condo owner.
- Condo owner/Renter Insurance protects the liability should a third party get injured at the condo and they decide to sue for compensation.
- Condo owner insurance provides coverage against damage caused by weather like rain, hail, lightning, thunder, fire and wind. It does not cover against floods or earthquakes.
As much as condominium owners associations usually have their own association insurance, a condominium owner should never rely on it because it doesn’t cover the interior of your unit. It is very important for both the condo owner and the renter to secure their respective insurance covers because you never know when a calamity could strikes. A Condo owner/Renter Insurance does not however cover for incidents that happen because of the owner’s or tenant’s carelessness. You may also need to purchase a separate flood or earthquake insurance policy, depending on your location and the likelihood of those events.