There are options for water leaks and the damage they cause, home equipment breakdown coverage, replacement cost versus actual cash value coverage, identity theft, credit card fraud, and even scheduled items coverage. There is one option no condo insurance policy should be without though…
How much condo insurance an owner needs is one of the more challenging questions I must answer when talking with someone who’s buying or owns a condo. Regardless of how the policy is written (see last week’s post, https://wiseinsurancegroup.com/two-ways-condo-insurance-can-written/), the amount of coverage must be sufficient to protect the finish out of the home and their personal property or contents. Let’s examine how to approach both areas.
I have been working with a first-time condo buyer over the last week. As we reviewed the different condo insurance options available to her from all our carriers, I was reminded of the two different ways insurance companies approach insuring a condo. Let’s look at what condo insurance is designed to cover from a property standpoint and then address how different carriers approach it.
I had an interesting conversation last week with a Dallas area mortgage professional about condo insurance. He was working on his client’s loan and had several questions about coverage, which I thought would be useful in guiding a blog post for those who own, or are considering buying a condo.
Last week’s post, An Introduction to Condo Insurance (see https://wiseinsurancegroup.com/an-overview-of-texas-condo-insurance/) addressed how to determine the amount of condo insurance needed and what it covers. There’s more to a condo policy, however, than covering the finish out of the home and your personal property or contents. There are other coverage items to consider including personal liability, medical coverage, deductibles, and home owner’s assessment.
I wrote a condo insurance policy last week for a new client. He’d started out with an offer for a single family home in the Dallas area which fell apart after the home didn’t appraise for the amount he offered. As he thought through what he desired in his next home, he decided to look at condos in the area. It turns out, he found the perfect home, but since it was the first condo he’s ever purchased, he had a lot of questions about condo insurance.
?Home insurance covers the entire structure of the home along with the owner’s personal property. Renters insurance doesn’t cover any of the structure, be it apartment or home. It starts with the person’s personal property. Condo policies straddle the space between a home insurance policy and a renter’s policy.
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