Condo Insurance

Condominium Insurance

Up until recently, having a Homeowners Association insurance plan was enough for most mortgage lenders. However, over the past decade, this has changed, and condo buyers are now required to have additional insurance on top of their HOA coverage. The reason for this is that HOA policies tend to not be very comprehensive. In general, they cover any liability to the association itself, and any damages to common areas of the condo community. This means that if someone were to be hit by a car or tripped in the parking lot, then your HOA insurance would cover it. However, if an accident happened in your condo, then you would be left liable without any coverage. Some HOA policies may cover renovations done by a previous owner and some personal property, but they tend to be bare bones.

Not to fret, Plus One has a plan to suit your unique needs.

Nevada Condo Insurance

To fill in the gaps left by HOA policies, you need condo insurance to ensure that you are fully protected. Not only do mortgage lenders now require this type of insurance for condo purchases, but it also gives you peace of mind.

Condo Liability Insurance

This coverage protects you if a visitor or service worker is injured on your property. This expands on the common area coverage of most HOA liability insurance policies. Not only can this coverage pay settlements to people who are injured, but it can also protect you against lawsuits, and can extend beyond the condo property line to incidents outside the home. If your child injures someone at school or day camp, you will still be protected.

Personal Property Coverage

You can also protect the contents of your home. Your HOA’s policy does not provide this coverage.  You are responsible for insuring your items.  This is coverage for any of your personal property in the unit, except for fixtures. Your electronics, clothing, equipment, toys, and furniture are all protected in case of damage or theft. You can also get coverage for taking these items off of your property, but the payout will be smaller. You can choose to have a cash value reimbursement or replacement coverage.

HOA Policy Deductible Coverage

One of the other issues with HOA policies is that they often come with unreasonably high deductibles. In some cases those deductibles can get up to $50,000. To avoid being shocked by a surprise like this, you can purchase deductible insurance. This will reimburse you for any deductible you have to pay as a result of making a claim on your HOA policy.

Loss Assessment Coverage

There may come a time when an entire condo community is struck with an unexpected natural disaster or accident that causes the entire complex to pay a hefty repair bill. It might be that a storm comes through, and the damage far exceeds what the HOA’s own insurance can cover. In these situations, most condo agreements state that the individual owners will have to pay a portion of the cost. Having loss assessment coverage means that you will be able to cover your share by going as little into your own pocket as possible.

Loss of Use

If you have to vacate your unit for an extended period because of a covered event, such as a fire, then loss of use coverage can provide you with the help you need to stay somewhere else while the building is being repaired.

Perils

Certain events, such as earthquakes, floods, and wind damage, may not be covered by your HOA policy. You can purchase additional coverage to make sure that you are protected in the event of one of these natural disasters.

Condo insurance can be complicated, especially when taking into consideration your HOA coverage that’s already in place. Talk to Plus One about your coverage needs to make sure that you are protected.