Jul 17, 2015

Posted by in Insurance | Comments Off on Questions That Need To Be Answered Before Buying Condominium Insurance

Questions That Need To Be Answered Before Buying Condominium Insurance

Questions That Need To Be Answered Before Buying Condominium Insurance

It’s just good sense to insure the property. Hopefully, a person never has to file a claim, but it’s always nice to know that option is there in case something goes wrong. Condominium Insurance is a form of insurance for those who choose to live in condos. Before a person picks up their phone to discuss policy with an insurance agent, they have to ask themselves some rather important questions. It’s only after these questions are clearly answered that policy talks should begin. People who know all about Condo insurance can visit an insurance website to Start an Online Quote Now.

Anyone shopping for Condominium Insurance needs to know what their master policy states.
While people who live in condos usually own their own dwelling, ownership of the entire building is something that is shared with other condo owners. Condo dues usually help pay for the insurance costs of the common areas of the building. However, each condo association’s master policy will be different. The policy and the association’s rules should clearly state exactly what is covered by the dues that are being paid.

Owners need to be aware that there are two basic types of master policies that associations typically use: all-in and bare walls-in. With an all-in policy, some of the interiors of an individual unit is actually covered. Fixtures, ceilings, and floors may be covered by association dues. With a bare walls-in policy, the exterior framing is basically the only thing covered. There can be a number of variations of either one of these policies. Owners who deal with bare walls-in policies will have greater insurance needs than those who have all-in policies.

It’s also important to know how much an association’s deductible is. There seems to be a trend to more expensive deductibles to save on monthly dues. Deductibles will be divided equally among unit owners. A decision also has to be made as to how much insurance is purchased. Once that decision is made, a choice between replacement-cost coverage or cash-value coverage has to be made. Basically, depreciation isn’t used to calculate replacement-cost coverage. As such, most insurance agents will recommend people insure their valuables with replacement-cost coverage even though it adds to monthly premiums. Owners should also look to take out additional insurance if natural disasters aren’t covered.

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