When considering homeowners insurance for your condo, you’ll want to think about the kind of coverage you need. While your condo association policy may cover common areas, it typically doesn’t cover the contents within your unit. In such a case, it is essential to obtain your own policy. This way, if something unexpected happens to your unit, you’ll be able to recover from the financial impact. In addition, many condo policies include extra living expense coverage, which pays for temporary living expenses while your unit is being repaired or replaced.
Some condominiums may not require homeowners insurance. A master insurance policy, however, does. This policy covers the structures and common areas within the development. The policy may also cover personal property, but the coverage amount will depend on the level of coverage. Generally speaking, you’ll want to have at least enough coverage for personal property and fixtures. You should also make sure that your condo insurance coverage includes rebuilding coverage, which will protect your investment if you have to undergo extensive renovations.
While you can purchase the right insurance policy for your condo, it’s wise to compare a few options before deciding on a policy. Some insurers offer lower rates when you install protective devices in your unit, such as alarms. You can also get discounts for being a senior citizen or belonging to a homeowner’s association. Bundling auto and condo insurance can save you up to $1250 a year.