What Does Condo Insurance Cover?

Not many condo owners are aware that the insurance policy held by their condo association only covers the exterior of the unit, permanent fixtures, plumbing, wiring, and carpets. Rarely does the coverage protect your personal belongings. Sometimes, the wording of the insurance policy might exclude coverage for flooding. Thus, it’s smart to get a personal condo insurance policy, but understand what it will cover before coming to an agreement. 

Personal Liability Coverage

In this day and age, it’s essential to protect yourself from any liability claims that could turn into a potential lawsuit. Personal liability coverage does assist with paying for possible legal expenses and resulting medical bills from a person who was accidentally injured inside your condo, and you were at fault. This coverage is a must-have in order to protect yourself financially. Find out more by contacting BenefitSource Insurance Services, Inc. in Aliso Viejo, CA.

Building Property Protection

Most condo owners fail to realize that repair costs inside the unit (flooring, inner walls, and countertops) aren’t covered under their condo association insurance policy. Building property protection will cover the payment for repairs and future renovation projects to your condo. Plus, this agreement will cover the cost to live elsewhere if your condo is badly damaged from a disaster. 

Personal Property Coverage

Condo owners can go several different routes with their personal property insurance coverage. One course is choosing actual cash value, which pays for the depreciation of damaged personal property. Another option is selecting a replacement cost coverage that doesn’t take depreciated value into account. Instead, the condo owner gets to reimburse the difference between the item’s actual cash value and the cost to replace or repair it. Often, this coverage does come with a limit or maximum dollar amount that can be reimbursed on a claim for a covered personal item. In some cases, a condo owner may need to pay a deductible before the coverage goes into effect. 

Life happens fast, so be protected for the unexpected with a personal condo insurance policy. BenefitSource Insurance Services, Inc. of Aliso Viejo, CA can help plan coverage that’s just right for you and your family.