Condo | Renter
CONDO FAQs
Who needs condo insurance?
You live in a condo, and the association has insurance. So why do you need insurance, too?
Your condominium association insurance covers the condominium building, commonly owned property, and liability insurance for the association. But that insurance doesn't cover losses to your unit as a result of a burglary, if water damage ruins your living room walls, or if someone slips on your wet kitchen floor and is injured.
Before You Buy Insurance
Before you purchase a condominium policy, check with your condominium association to make sure you're buying the insurance you need.
Find out what parts of the interior are covered by your condo association's insurance and what items are your responsibility. Then make sure that you have adequate insurance to cover repairing or replacing the items for which you are responsible.
The contents of your condominium are not insured under the association's master condominium policy. So, estimate the cost to replace your contents and buy insurance for that amount.
Your association's master condominium policy does not provide any liability coverage for your unit or your personal exposures. So, make sure you purchase adequate liability insurance, usually $300,000 to $500,000 or more, depending on your situation.
If your association has insufficient funds, you may be assessed a proportionate share to pay for damage to your building and other situations. Check to see whether the condominium insurance you purchase covers these assessments. You may wish to buy Loss Assessment Coverage, which is available in amounts up to $50,000.00.
RENTERS FAQs
Why do I need renters insurance?
Landlords insure the physical apartment building against damage from occurrences such as fire, hail, and vandalism. But their insurance policy does not cover your belongings, so don't expect the landlord to owe you payment should anything happen. Another reason to get renters insurance is to protect yourself against any accidents caused by other tenants.
Renters insurance can also protect against liability lawsuits or medical bills of guests injured in your apartment.
Some landlords require you to purchase renters insurance. If so, this would be stipulated in your lease or lease riders.
How does renters insurance work when you need to replace your property?
There are two kinds of payouts: actual cash value and replacement cost coverage.
Actual Cash Value. This type of coverage pays an amount equal to the current cost to replace your items minus the depreciated value.
Replacement Cost Coverage. This type of coverage pays you the amount it would cost to replace your lost or damaged property. You only get the money if you replace the items. There is also usually a limit on how much money you receive, and the premiums tend to be higher.
Deductibles. This is the amount you pay for the lost or damaged goods, before the insurance company would begin paying. Typically, the higher the deductible, the cheaper your policy will cost.
What other protection can I get from renters insurance?
Liability protection. Some renters insurance protects you against a lawsuit if someone or their property is damaged on your apartment's premises.
Medical payments to guests. Some policies cover the medical bills up to a limit of anyone, except you or anyone else who lives in the apartment, who is injured in your apartment.
Increase in Living Expenses. If your living expenses increase, because you must live elsewhere due to a loss, some policies cover, up to a limit, that increase.
Lost property while traveling. Some renters insurance policies cover your property even when you are traveling, should the airline lose your luggage.
Premium policy add-ons. If you are willing to pay a higher premium, you can buy additional protection. The add-ons differ from company to company, so be sure to ask for details. Typical add-ons include:
· property damage due to floods or earthquakes
· damaged wedding or engagement presents
I have a roommate? Do we each get our own policy?
It depends on the policy. Some insurance companies offer one policy that covers multiple people. Others require each person to get a separate policy.
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