In contrast to homeowners, condo owners do not own the building they live in. Instead, they only own a unit within a larger building. Usually, that building is managed by the condo association or condo board who has its own insurance to cover commonly owned property, the building structure, and liability issues.
However, that insurance does not cover the condo owners’ things, which is why condominium or co-op owners need insurance designed specifically for them.
As a rule, condo insurance applies only to the items inside your condominium, as well as some liabilities. These include:
There are two separate types of personal property coverage to consider: actual cash value and replacement cost.
Although most condo insurance policies offer an extensive and comprehensive range of coverages, they do not cover everything. The following items are either not covered at all or require a specific policy:
Floods and earthquakes typically have their own separate insurance policy. Flood insurance policies are issued through the National Flood Insurance Program for the most part. Flood insurance is often required as a mortgage loan requirement.
The gradual wear and tear of a property is a common cause of damage. However, it is considered the condo resident’s responsibility to make sure their property is well-maintained. Damages that result from poor maintenance are not covered.
Vacant condo insurance may be required if your condo will be empty for an extended period, for instance, 30 consecutive days. Unoccupied or vacant properties are considered at higher risk, and might not be covered by your insurance policy.
See More: golf cart insurance agent near me
When calculating your condo insurance, insurance companies evaluate a range of factors. By knowing what these factors are and how they affect the insurance rates, you can significantly reduce the amount you are required to pay each month or year. Here are some examples:
If you use the same insurance provider for both condo and auto insurance, you may be able to reduce your cost significantly. However, sometimes this is still more than you would pay with policies from two separate providers.
Each insurance provider assesses risk differently; as such, it pays to get a multitude of quotes before deciding with whom to go.
Pay in Full
By paying your insurance cost in one annual installment, you can often save money as opposed to paying monthly.
Upgrade Your Home Security
Alarm systems and safety devices, such as fire alarms, burglar alarms, and sprinkle systems, are an easy way to get discounts on your policy.
Increase Your Deductibles
Increasing your deductibles will decrease your premiums. However, ensure you have adequate cash to hand in case of an emergency.
Cash Value or Replacement Value
By deciding to opt for an actual cash value replacement, your cost of insurance will decrease. However, in the event of a disaster, you will need to find the extra cash to buy replacements for your property.
Age of Condo
The age of the condominium can affect the cost of insurance. New condos are viewed as less risky, and so can reduce your cost.
The average cost of condo insurance in Massachusetts is $441 per year.
It is recommended residents in Massachusetts carry insurance for their condos. Condo owners are often required to carry insurance by their condo association's bylaws and terms of any loans they have on the residency.
The insurance policy required for condos is condo liability insurance. This protects you and your family from any lawsuits for bodily injury or property damage.
This is a combination of increased disasters, higher risks, aging buildings, and more claims that are more expensive.
Homeowners insurance is on average more expensive than condo insurance. This is because homes tend to be larger, and therefore cost more for insurance.
To learn more and ensure your condo with the best policy on the market, you can email our experts at Econosurance who would be glad to help you out.
The information contained in this website is provided for informational purposes only, and should not be construed as advice on any matter. The material in this website may not reflect the most current developments within the insurance industry. We disclaim all liability in respect of actions taken or not taken based on any or all of the contents of this website to the fullest extent permitted by law. Do not act or refrain from acting upon this information without seeking professional advice from a licensed insurance agent.