As a condo owner, you do not own the land or building your home is located on, but you still need adequate insurance coverage for your unit and personal belongings. You will require condo insurance if you want protection against problems not covered by the HOA master policy, such as theft of your personal property or accidental injury to others.
When protecting your home, condo insurance is more complicated than a renters or homeowners insurance. Orr Insurance agents have helped thousands of clients in Goderich get the right Condo Insurance coverage, and we can help you too.
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Condo insurance covers your condo and its belongings from theft and natural disasters. When you own and live in a condo, you are insured in two different ways by different policies: a master condo insurance policy as well as an individual condo insurance policy.
Depending on the circumstances, some claims will be covered by the master policy, others by individual insurance, and some by a mix of the two.
Each condo association has its own master insurance policy (included in your Home Owners Association(HOA) payments) that protects against damage to the condo’s building, grounds, and outdoor amenities. This policy could be a “bare-walls-in” or an “all-in” policy.
Also known as a single-unit policy, an all-inclusive policy covers your condo’s appliances, wiring, plumbing, and carpeting. Consider this form of insurance protection for everything in your condo you do not own and would leave behind if you moved.
This insurance does not cover anything within your walls, regardless of whether you own it or not. It does not cover carpets or appliances and may or may not cover plumbing and electrical systems.
Regardless of whether your condo has all-inclusive or bare-walls-in insurance, to be fully insured, you will need to purchase an individual policy. If you have a bare-walls-in policy, you may still need to get additional coverage to protect your appliances and fixtures.
As a condo unit owner, you are liable for the individual policy. Often, your mortgage lender or condo association will need you to buy insurance coverage. It is not generally necessary but is always recommended for protection against property loss and liability.
An individual condo policy has the following components, some of which are optional:
The individual condo insurance policy covers the expense of repairing or replacing your personal belongings if they are damaged or destroyed. Your home’s furnishings, electronics, clothing, precious valuables, and other essentials are protected against loss or theft.
You can even schedule key items to guarantee that they are fully covered and not subject to limits.
You cannot always be in control of what happens on your property, so you do not wish to be held accountable for it. Condo insurance covers third parties’ accidents and libel, slander, and defamation claims.
Generally included, loss of use covers the expense of living (hotel stays, ordering food from restaurants, etc.) if you are forced out of your home due to the damage.
If a common area in the condo is destroyed, the condo association may conduct a “loss assessment” on each unit and request a set amount to restore the damage. Loss assessment coverage, which is typically included in a policy, covers the costs that the condo association holds you accountable for.
Orr Insurance offers the best coverage for condo insurance at competitive rates. Contact us for a free quote.
Depending on your insurer and policy, your condo insurance may not include everything or may put limits on specific items.
For example, most condo plans do not cover mold removal unless a covered event causes it. For instance, naturally occurring mold is not covered, but mold caused by a ruptured pipe may be.
In addition, flooding is not covered by condo insurance, as flood insurance is a separate policy that must be purchased if you want coverage for flood-related damage.
Some regulations may place restrictions on jewelry, art, paintings, and other valuables.
Condo Insurance works similarly to home insurance or renters insurance policies. For instance, condo insurance policies may limit coverage for valuables to $1,000. If you had $10,000 worth of jewellery stolen, just $1,000 out of the $10,000 would be covered.
If you want to ensure that your jewellery, art, collectibles, and other valuables are fully covered, you may be required to get extra coverage for them.
Condo insurance costs might vary based on building specifics (such as age, construction materials, etc.) and the amount of coverage you opt to get based on the value of your belongings.
A person with costly jewellery, art, etc., will pay more for condo insurance than someone with few valuables.
Some insurance firms provide a discount if both the master and the unit owner insurance policies are with the same provider.
Cash values suggest that you will be refunded the original purchase price minus depreciation, depending on the item’s expected lifespan. This may sound like a smart idea, but the amount of depreciation accrued at the time of loss may not be sufficient to replace the item. Consider the difference between the price of a refrigerator five years ago and its price today.
Talk with our Orr insurance experts about your replacement cost reimbursement options in the event that you must file a claim. This choice may have higher premiums, but it is more likely to provide adequate coverage in the event of an accident.
Clearly, the cost of your premium plays a significant role in determining which insurance coverage you can afford. Sadly, many individuals only consider this factor while selecting insurance. When the premium is low, a high deductible may seem like a good deal until you realize how much money you may stand to lose in the event of a total loss.
If you get condo insurance without considering the cost of the deductible, you may not have enough money to reach the point where the policy pays out.
Review your condo association’s master policy when requesting additional coverage and discuss it with your insurance agent. It may cover only the condo’s interior, such as bare walls and studs. This means that major issues such as plumbing fixtures and wiring issues are not covered.
All-inclusive coverage protects your belongings, responsibility in case of injury, and internal structures such as plumbing and wiring.
Study the policy thoroughly and clarify any points of confusion with the right department. What is and isn’t included in most insurance policies is clearly stated. Earthquakes and floods, for example, are often excluded from coverage by insurance policies. You should also inquire whether or not your valuables are protected from theft.
A rider can be added to a personal articles policy to cover anything that isn’t specifically mentioned.
Condo owners frequently underestimate the value of their belongings or neglect to obtain coverage for disasters that are most likely to happen in the area. Many consumers take an all-or-nothing approach to insurance because legal jargon can be complicated.
You may choose to add a rider if you possess valuable items, such as jewellery or a family heirloom. This is because condo insurance often has “special limits” or “sub-limits” for particular types of stolen property.
An Orr Insurance agent can assist you in evaluating your options. While an all-inclusive policy offers the most coverage, it might be costly. Depending on your requirements and budget, you can select from several different levels of coverage and deductibles.
We will assist you in locating additional coverage alternatives, such as flood insurance or a personal articles policy, to ensure that you have appropriate protection.
Consider an independent insurance agency, like Orr Insurance, to provide you with coverage options you can trust. To learn more about how condo insurance can protect you, get in touch with our experienced agents today for all your condo insurance needs.
Condo insurance is not required by law. However, many mortgage lenders require an HO-6 policy in order to secure a loan. Moreover, this policy will provide coverage for your personal property and potential liability losses.
As this important coverage is not provided by a master policy or any other insurance policy, Orr Insurance recommends it.
Your condo insurance may provide coverage for your home-based business, such as the replacement of devices damaged by a covered occurrence. You will likely need a commercial policy, such as a Business Owner’s Policy or In-Home Business insurance, in order to obtain the business coverage you require.
Insurance companies consider numerous factors to calculate condo insurance costs, including:
Crime rates, closeness to a water source, and fire hydrants all play a significant role in determining a home’s value.
Expect to spend more for larger personal property limits if you need to insure items such as luxury appliances and expensive rugs.
If you have filed claims in the past, your premiums may be higher.
Don’t panic if an incident has occurred requiring you to file a condo insurance claim. Your insurance agent can guide you through the process.
After ensuring that everyone is secure, you should collect information about the claim, including what occurred, when it occurred, what was damaged, who was involved, and photographs of the damage.
Once you have gathered this information, you should notify your insurance agent, who will report it to your insurance company and assign an adjuster to analyze your claim paperwork and determine.
ORR insurance will not try to sell you a condo insurance policy that isn’t suited to your specific situation and budget. We will instead take the time to get to know you and your needs in order to locate the best possible policy for you. We do not believe in a one-size-fits-all, cookie-cutter condo insurance policy.
When choosing Orr Insurance as your trusted insurance partner, you will work with a dedicated insurance agent who is your advocate. With us, you will receive only the coverage you require and nothing extra. As a fourth-generation family business, Orr Insurance has been assisting people in protecting their cherished possessions and property for more than 125 years.
We understand that there’s a lot at stake when it comes to protecting your condo. Get in touch with Orr Insurance today to learn more about your condo insurance. Call 1.855.773.0059 today for exceptional service and peace of mind.
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