What To Consider When Buying Condominium Insurance

If you own a condo or townhome and require insurance, you should begin by contacting your building association. Ask what is and is not covered by the insurance on the actual building itself. You may find that the money that you pay in fees each month or each year go a large way towards paying for common area that is outside your building. However, you may also find that from the moment that you enter your own doorway, your unit is uninsured. This means that if flooding, fire, or other types of damage affect your property you are responsible for paying full costs on the damage. Depending on your building association's codes and bylaws, you may even be responsible for damage caused by repair personnel or by problems that affect the entire building.

Next, you'll want to spend some time considering how much it would cost you to replace everything inside your unit. Consider whether you have any special property -- such as jewelry, art, antiques, or other valuables -- not usually covered by home policies. Is your unit on the ground floor? If so, you may want extra property insurance against theft and extra insurance against flooding. Even if you are on a top floor, consider that the many common buildings and hallways in your apartment or condo building may mean that your home is more susceptible to theft. Therefore, you may wish to get additional protection against burglary. You'll also want to consider how much it would cost you to repair damage to your home structure in case fire or some other mishap occurs in the floors, ceilings, walls, of your unit. You need a policy that will cover the full expenses of such repairs as well.

If you own a condo or townhome, you need condo insurance.Condo homeowners insurance picks up where your building's insurance leaves off. It protects your unit and your condo investment by protecting your personal property as well as the inner structure of your unit. Luckily, condo policies tend to be less expensive than other types of home insurance, simply because you do not have to pay for insuring the outer building or the common areas of your condo building.