Condo or Condon’t — Condo Insurance
July 16, 2018 - Condo Insurance
You’ve taken the plunge and opted for condo life. Woohoo! Now that the papers are signed, it seems like everything is taken care of for you—building maintenance, roof repairs, landscaping, insurance, etc. It’s time to relax because everything is covered, right?
Not quite. The insurance policy provided by your condo association covers the building structure and common areas, but what about potential structural damage to your unit and covering your belongings? Without a personal condo insurance policy, you could be left high and dry if your unit floods, is damaged in a fire, etc.
Most condos need two insurance policies. It doesn’t matter if you bought it in Naples, Marco Island, Fort Myers, Cape Coral, Lehigh Acres, or Labelle. You should definitely be aware of these two policies.
Master Policy: Generally provided by your condo association, this policy covers the physical structure of the building, including basement, roof, walls, elevators, lobbies, etc. Coverage usually includes both physical damage and liability. It’s a good idea to get a copy of the policy so you know what’s covered.
Personal Condo Policy: This one covers your stuff. It will offer additional structural damage coverage to your unit, including cabinets, appliances, personal belongings, and more. This also covers living expenses if you fall victim to a fire, theft, or other covered disaster. Many insurance carriers, such as Tower Hill, Gulfstream or Peoples Trust, offer enhancements that include personal property protection in your condo insurance policy. Think of all of the things you’ve collected over the years: Do you want these covered if you suffer a total loss? Another thing worth asking about is a Replacement Cost option which will pay the full replacement cost of your belongings, not just what they are worth today. Look at it this way: You may love that six-year-old super comfy couch in the family room and it’s priceless to you but in terms of Actual Cash Value it is most certainly far, far less than what you paid for it originally. Sometimes these terms get confusing so please feel free to call us at Goodlad & Swank – we love explaining how it all works.
Other coverage to consider:
Umbrella Policy: If someone were to trip and fall inside or near your condo, they could sue both you and the condo association. Umbrella provides additional layers of liability protection and can protect against lawsuits that target both your current and future earnings.
Flood or Earthquake: Read the fine print on your policy. They often won’t cover damage due to these disasters. Additional coverage may be required if you live in a prone area. Another thing to keep in mind is that may professionals consider all of Florida to be a flood zone. So, it doesn’t matter if you are inland you are still susceptible to flooding.
That was a lot to take in! Hopefully we’ve been able to answer your questions. If not, call us at 239-674-7630. We’re happy to listen and get them all answered for you.