Compare Condo Insurance
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Insurance doesn’t have to be boring. That’s why we hired Sara East to be our BA insurance writer. Maggie specializes in making mundane subjects hella-entertaining.
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Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
Insuring a condo differs from insuring a home because you own your unit and what's inside, but someone else owns the condo complex. It can be confusing to get coverage, which is why working with an independent agent can streamline the process.
Independent agents can assist you when you are comparison shopping for a condo policy. These agents have relationships with multiple insurance companies and can explain the differences and similarities between policies so you can make an informed decision. To start, here's how condo insurance compares to other types of living insurance.
What Is Condo Insurance?
When you purchase a condo you are purchasing a unit or piece of property that is part of a much larger group of properties. While you own what's inside your condominium, someone else owns the external areas. This means you're only responsible for insuring what you own. Condo insurance is coverage that you purchase for the parts of the condominium that you own.
What falls under the limits of your condominium will differ based on the condo association that owns the property. For this reason, the association creates a legal document, called declarations, that outlines where ownership by the association stops and ownership by the condo owner begins.
How Does Condominium Insurance Compare to Homeowners Insurance?
When you purchase homeowners insurance, you're insuring your home or building and all of the building components inside it. That's why in a homeowners policy you have a limit for dwelling coverage and a separate limit for your personal property.
With condominium insurance, there is only one limit. Your building elements are included in your personal property limit, and you're receiving coverage for the following:
- Appliances like toilets, light fixtures, showers, cabinets
- Internal walls
- Personal property
- Liability coverage
When selecting your condominium insurance policy, you'll have different levels of coverage to choose from that an agent can help you decide between.
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Is Condominium Insurance Different from Renters Insurance?
Yes, condominium insurance differs from renters insurance because you own the unit that you're living in.
"Condominiums have building elements that are covered under condo insurance that wouldn't be covered under renters insurance," explained insurance expert Paul Martin.
Building features like ceiling lights, cabinets in kitchens, vanities, toilets, and showers are all considered attached features of the building that you insure with a unit owner's policy when you own a condo. Under renters insurance, the owner of the property insures these items.
What Does My Condo Association Pay For?
Your condo association, known as an HOA, is a legal organization that is responsible for the external areas of the community. For this reason, the association has their own insurance policy that covers the common property such as sidewalks, clubhouses, parking lots, etc. However, once you're inside your unit, it's up to you to cover your building and assets.
As a condominium owner, you also own a prorated percentage of all the common property of the association. For example, if there are 60 condos, then you own 1/60th of the common properties. This is why HOAs have monthly association fees that assist with the costs of maintaining the common property.
DID YOU KNOW?
73.9 million Americans live in homeowners associations and condominium communities.
Several Ways to Compare Condo Insurance Policies
When searching for condominium insurance, many people start by getting quotes online. This is a fast and effective way to get preliminary information and purchase a policy with ease.
Independent agents work for the consumer, not an insurance company. An independent agent’s role is to compare various policies, provide the information to you, and help you to evaluate your choices. Your agent will also be able to find all available condo insurance deals and discounts.
Factors to Consider When Reviewing Policy Options
Policies can differ in many ways. When you are looking at condo insurance quote comparisons, remember that the lowest-priced policies may not provide adequate coverage. Be sure to consider the following factors:
- Deductibles: Policies with high deductibles will cost less money but will require more out-of-pocket costs when you file a claim.
- Personal property caps: When you purchase a policy to cover your personal property, the items that must be covered are generally categorized into different groups such as clothing, furniture, jewelry and cash. Each group will have an assigned coverage cap.
- Liability coverage: The more liability coverage you can afford, the better. The costs are not usually significantly higher for additional liability coverage, but the added protection you will receive in the event of a liability lawsuit can be invaluable.
- Actual value vs. replacement cost coverage: Actual value coverage will provide you with compensation for lost or damaged goods based on their depreciated values. Replacement cost coverage will provide you with enough money to purchase new items to replace the ones you have lost.
- Named-risk vs. all-risk coverage: Some policies offer coverage only for specific, or named-risk, hazards. It's a good idea to read the policy terms carefully to avoid choosing a policy for its low price, only to discover that it will not cover your loss.
Trusted Choice vs. Big Brands
The Trusted Choice brand is built on the customer-focused integrity of more than 300,000 business owners, agents and employees nationwide. With more local insurance agents than State Farm and GEICO, this network of agencies serves more consumers and pays out more claims
| Direct Premiums P&C | Number of Licensed Agents | |
|---|---|---|
| Trusted Choice Independent Insurance Agents | $195 (billion) | 140,000 Local Agents |
| Geico | $18 (billion) | 159 Local Agents |
| State Farm | $53 (billion) | 18,000 Local Agents |
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Get Condo Insurance to Meet Your Needs
Independent insurance agents want to see you get the best possible condo insurance at a great rate. These agents will ensure that the policy you choose adequately suits your needs. Independent agents can explain your condo or townhome insurance coverage and how it will help you after a loss.
With an independent agent by your side, you can rest assured that you have chosen your condo insurance company wisely. Contact a local, independent agent near you today and begin exploring your many condo insurance coverage options.
https://www.iii.org/article/insuring-co-op-or-condo
https://foundation.caionline.org/wp-content/uploads/2020/08/2020StatsReview_Web.pdf
https://homeguides.sfgate.com/condominium-association-1442.html