The Components of Condo Insurance

Before you can buy condo insurance you need to know what your money is going towards. Just like any other type of policy, with condo insurance there are many details that determine just how good your coverage actually is. If you have never purchased condo insurance before, you should be able to get assistance from your agent or a broker.

Generally speaking, there are four major parts of condo insurance that you will want to be aware of. Of course, there are other details, but these are the most important.

First off, you need to decide on your deductible. This is the money that you will have to pay before your insurance company begins to foot the bill. If saving money is your number one goal, look into a higher deductible.

Next, liability coverage should be on your mind. If somebody visits your condo, and gets injured on your property, this coverage will help to take care of the bill. This is not something that is used a lot, but you will definitely want to look into it.

Building property coverage is pretty much what it sounds like. But since you are insuring a condo, you need to know what this covers. For most condos, this coverage is for the building materials that are within your unit. This could include drywall, kitchen cabinets, flooring, and other like items.

Finally, you need to look into personal property coverage. As you can imagine, this will cover your personal possessions if they are stolen, damaged by a fire, etc. Keep in mind that there are some exclusions and limitations.

All in all, make sure that you have enough coverage in these four areas when purchasing condo insurance.