Just like houses, condominiums can be insured for the value of the property itself, as well as the owner’s belongings and appliances. Unlike a single family home, condominium buildings themselves are owned by a third party, or collectively by the residents through an association. As a result, the question of who is insuring what can become confusing. This article gives basic tips for any condominium resident to make sure they are properly covered.
You should first understand your master policy. The master policy is a shared insurance among the residents of a condominium that covers common property, such as tennis courts or swimming pools, exterior walls, and hallways. It is paid by all residents in the form of monthly dues to the association. Sometimes, this policy only covers these commonly shared areas, but sometimes they extend to the interior architecture of individual units, including walls, light fixtures, heating facilities, and more. Find out what the deductible is from the master policy.
Once you know how much your master policy covers, you can decide how much condo insurance in Cape Coral you would like. If your master policy covers part of the interior, you will not need as much. Your personal condo insurance is mainly to cover your personal belongings in the event of damage to the building or theft. It can extend to all property, including televisions and electronics, artwork and jewelry.
You will have to decide between getting cash value or replacement cost coverage. Cash value coverage only pays out the current value of lost or damaged items. The insurance company can estimate depreciation from what you originally paid for something, and that is taken out of the reimbursement. Replacement coverage, on the other hand, will cover the cost of what it would take to restore an item to its original state. Generally, replacement coverage is preferred as it has more practical value to the policyholder.
As noted above, condominium insurance is different that insurance for a typical home. Your primary consideration when purchasing Condo Insurance in Cape Coral will be the value of what is inside the condo, and not the exterior.
