Condominium Owner Insurance

Condominium owner insurance is a safety net that protects you financially against the damage or destruction of your home. With adequate coverage for your condominium, you can confidently make improvements to your unit, add new appliances and fixtures and upgrade your home to suit your needs without worrying about your financial investment. Your condominium should be as secure as a house in terms of the insurance that you buy to protect this valuable asset.

Condominium owner insurance differs from home owner insurance in that parts of your residence are protected by the master policy administered by the condominium board. When you purchase your unit, you should receive a copy of the by-laws or condominium owner agreement that lists the structural elements that are covered by the master policy. These elements could include walls, floors, ceilings, permanent fixtures and appliances, plumbing, electrical wiring, or any combination of these features.

If you add new fixtures to your kitchen or bathroom, install a dishwasher or new drawers and shelves in your dwelling, these improvements may be covered under your condominium owner insurance. Fixtures or appliances that were added by the previous owner may also be included under your policy. Your insurance contract should state which perils, or hazards, are covered under your agreement.

Covered Perils for Condominium Owners

As the owner of a condo, your unit is protected against the same perils that are covered under a standard home owners policy. You can choose a basic policy, which offers protection against a set of named hazards, such as fire, lightning, hail, explosions, plumbing or electrical mishaps and theft. Alternatively, you can invest in a more comprehensive plan that protects your home against any potential hazard, with a few named exclusions. These are things to consider when comparing condo insurance quotes.

Compare quotes from a number of agents or brokers to find the level of protection that meets your needs. In some complexes or buildings, the condo owner is not responsible for common areas, such as basements, laundry facilities, recreation centers or lobbies. However, in certain cases, you may be responsible for a percentage of the damages in the event of a fire or other disaster. Your condominium owner insurance should cover every element in your unit that is not covered under the master policy.

Protecting Property in Your Condo

As with renters insurance, the contents of your condo -- including furniture, clothing, electronic equipment, collectible art or jewelry -- are protected under your condominium owner insurance. While some insurance policies pay for the full replacement value of these articles, others may pay for a percentage of their total value. Some plans cover the original value of the item, minus the costs of depreciation.

To protect your property and receive the maximum value for your belongings in a settlement, make it a habit to take an inventory of your possessions. Make a list of each item, its original value, brand name and date of purchase. Always include the date of the inventory on your document. When you purchase a new television, computer or piece of jewelry, add it to your inventory list. Keep the list in a secure place, along with photographs of your belongings.

A floater is an addition to your basic insurance that protects belongings of high monetary value. Precious jewelry and other possessions that exceed the limit stated in your contract may be covered under a floater. Review the terms of your contract to find the maximum coverage limit for a single personal item. This limit is often between $1,000 and $2,000.

Liability and Condominium Ownership

Your condominium owner insurance includes personal liability protection. If you are sued by an individual who is injured or suffers damage to personal property while visiting your condo, the liability component of your condominium owner insurance will pay for the costs of your legal defense. Your condominium owner insurance will also cover court costs and damages awarded to the plaintiff.

The owner of a condo may decide to add an umbrella plan to expand the coverage limits of a liability plan. This protects you against being held financially responsible for damages that exceed the maximum limit stated on your policy. You may also consider adding a medical payments option, which covers minor medical costs for injured parties. In most cases, a person who's hurt on your premises and requires medical care can submit bills directly to your insurer when you include this option with your plan.

Injuries that occur in common areas of the complex are often covered under the liability component of the board's master contract. Condominium owner insurance protects those features and fixtures of the unit that belong to you against damages, losses or legal action. Because your home is a vital part of your life as well as one of your major financial assets, securing your property should be a top priority.