Monday, May 12, 2014

What are the most important coverages on a condo policy?

Colorado home insurance questions answered: Condo insurance

Condo and townhome policies are different than a regular home policy, mainly because there is typically an HOA policy that covers the exterior of the structure. Here are the 4 most important coverages when insuring a condo/townhome:

1. Dwelling coverage- although there is a policy covering the exterior of the building, you are still responsible for the drywall in. Dwelling coverage pays to repair drywall, flooring, and appliances damaged from a covered loss.

2. Personal property- covers all of your furniture, clothes, electronics, and other property that is not permanently attached to the structure.

3. Loss assessment- if the HOA decides to put a new roof on the structure, they will often issue an assessment to the homeowners. This coverage pays your portion.

4. Personal liability- if someone is injured at your home, or you cause damage to your neighbors unit, this will pay for the damages.