Purchasing a condominium presents itself with some unique insurance ramifications of which the buyer is often not aware.
Here are 5 common insurance mistakes often made by new condo unit buyers
- Assuming that the condominium master policy covers their personal property and personal liability. This is NEVER true.
- Not reviewing (or having an insurance professional review) the insurance section of the condo by-laws. The by-laws usually dictate what damages to the unit will be covered by the master policy vs. what damage the unit owner is responsible for and hence needs to insure against. The varying degrees of responsibility are many depending on the language in the by-laws.
- Not fully understanding the insurance needs of a condo unit owner and how the Condo Unit owners policy responds to those needs. Risks unique to condo ownership include Loss Assessment coverage, Improvements and Betterments made to the condo, and the Master Policy deductible.
- Failure to notify their insurance agency or company of changes to the Master Policy deductible and/or insurance clause of the condo by-laws.
- Not realizing how inexpensive getting the proper coverage can be.