Condominium Insurance Information
Condominium Insurance - Stafford, Fredericksburg, Dale City, VA
What Is Condominium Insurance?
Condominium insurance provides financial protection against disasters.
Owners of condominium units do not own the entire condominium complex. Typically, they own their own unit outright and share ownership of the rest of the complex with all the other owners. From an insurance point of view, that means all individual unit owners have a collective responsibility for insuring areas of the complex owned in common -- building exteriors and hallways, the pool area, etc. A condominium association typically collects monthly dues from unit owners and uses a portion of these funds to insure common areas.
Meanwhile, the unit owner typically is responsible for separately insuring everything within the four walls of his or her individual unit. However, rules differ from complex to complex, and it's important to ask the right questions to ensure you have proper insurance coverage.
Condominium insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters are covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
Why Do You Need Condominium Insurance?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That's important because chances are your home is likely one of your largest investments.
- If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender may require insurance.
It is important to know that condominium insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what's included and what is not.
Things To Consider And Questions To Ask Your Agent
Here are few things to discuss with your agent that will influence your decisions.
- How much will it cost to repair the portions of the unit that I am responsible for and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home's features and the things you own so you can make an informed decision about coverage.)
- Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
- What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
- What's the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)