3 Things Condo Owners Need to be Prepared For.
The lock ‘n’ go lifestyle of condo living is great, offering convenience and security, but don’t assume nothing can go wrong. Unexpected risks exist. Here are three common risks, plus how condo insurance helps safeguard your investment and peace of mind.
#1 Someone hurts themselves while visiting you.
Wet floor? Slippery scatter rug? No handrail on the stairs? Patio door glass too clean? You could be held liable for your visitor’s back injury or broken nose.
Solution: Liability condo insurance coverage.
#2 You cause a flood.
If you leave water running in your unit and it affects the units beside or below you, you will be responsible for paying for damages and repairs. (In a similar scenario, if you’re doing a little home improvement and hit a water pipe with your drill, you will have to pay for those damages, too.)
Solution: Water insurance coverage.
#3 Your condo board can’t pay a big repair bill.
Typically, condo boards need to have more than $100,000 in their reserve fund at any time. If they don’t, and a repair is significant, the owners of units in the condo may be held liable to pay for repairs to the building.
Solution: Loss assessment insurance coverage.
The first step to making sure you’re prepared is to understand what you’re responsible for in your unit. Get a copy of your condo building’s declaration and provide it to your insurance provider. Your provider will review it and determine what you are responsible for. This will vary from building to building. In some instances, you will need condo insurance coverage from the studs in. In others, you will only need coverage for your contents. Plus, of course, liability, water and loss assessment coverage.