If you think that it is easy for Condominium owners to obtain an insurance for their unit, you have another think coming. A condo owner typically owns the unit in which he resides and not the entire structure.
So that means that while he can leave worries about damages to the building association, the building's master insurance policy will only cover the external structure or "shell" of the home. But what about the individual unit itself if it gets damaged?
This is why it is advisable for the individual unit owners to purchase a personal home insurance policy (type HO-6). That's because the policy taken by the building does not include protection of your belongings. It may not offer liability coverage within their homes, either.
Make sure you're covered
Ensure that the building association policy is adequate, because it will replace the building if it is destroyed. First check what coverage is offered by the building's master policy. You will know that if you go through the association bylaws or property lease. The master insurance policy typically covers the common areas in the building.
Sometimes unit owners can insure the bare walls, which means that the building pays for everything from the drywall in. This assumes several factors such as whether you own the inside walls of the condo, or just the space between them.
Then, itemize your possessions. Make a list of everything you own and videotape the contents while you are at it. Store it with a friend or relative - that way, if your home is lost, you won't lose the record as well. The inventory is necessary because your HO-6 policy must have enough coverage to replace your belongings if they are all destroyed.
You may also need to buy endorsements or individual insurance policies, to insure certain valuables, like jewellery, antiques or artwork.
Besides structural damage to the outside of your property and the destruction of your belongings, the last issue you need to consider is liability coverage.
Your HO-6 policy will also provide liability coverage. That way, you will be covered for accidents to others if they occur in your apartment.
Know the deductible on your building's policy. Incase of shared spaces getting damaged, All the owners / members of the co-operative or condominium will need to contribute money attain that deductible. If the damages are specific to your property, and the policy covers it then, you will have to pay for it.
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