How Much Condo Insurance Do You Need?
Questions to Ask Your Condo HOA
Owning a condo is different from owning a house. Living in a condo means that you join into a homeowners association, or HOA, which will take care of tasks that you would have to do yourself if you lived in a house, such as landscaping. One of the other benefits of joining an HOA is that some insurance protection will be provided. Before skipping out on your own condo insurance policy, make sure to ask your HOA these questions to find out just how much protection is provided.
- What does the master policy cover? Typical master policies will provide coverage for the exterior of your unit and any common areas, such as playgrounds and gyms. They will not provide any protection for what is kept inside your unit. Keep in mind that each master policy is different, so check to see what coverage is provided when you move in.
- Is flood damage covered? Just like with a homeowner’s insurance policy, flood damage will not be covered by the master policy or your own condo insurance policy. The only way to get protection from a flood is to invest in a separate flood insurance policy.
- Replacement cost or cash value coverage? After you decide how much condo insurance you need to invest in to cover any gaps in the master policy, you will need to pick between replacement cost or cash value coverage. Replacement cost coverage does not take deprecation into consideration, and will provide you with a check to replace any damaged or destroyed item with a new model. Cash value coverage will replace damaged or destroyed items for the value of the item minus deprecation.
For all of your condo insurance needs and to ensure that you have the right amount of protection for any unfortunate situation, contact the insurance professionals at Massive Insurance in Pasadena, California.