Typically, protection offered on condos comes as part of a condo co-op policy that protects against many other things as well.
Do You Need Fire Insurance For a Condo?
Some people believe that they will be protected by their homeowner's association against fire, theft, and other unexpected things in life that cause damage to their personal property. However, this is not the case. The homeowner's association typically applies money to fixing the neighborhood up but does not provide replacement for personal property that is damaged when a catastrophe strikes. The homeowner's association fees will also cover communal damage to the general property from catastrophe such as damage to elevators, hallways, and other general use areas, but may not cover damage to the property in your own personal unit.
Obtaining Condo Insurance
Under a general insurance policy for a condo, coverage is provided for damage that may occur from fire, water, electrical malfunction, vandalism, damage caused by aircraft or vehicles, explosion, wind, hail, smoke, and lightning. This, therefore, serves as your fire insurance for a condo. There is typically additional coverage offered through certain insurance policies for other types of damage, such as flood insurance protection. The provisions of the insurance coverage varies from one insurance company to another.
Insurance Policy Options
When you apply for your condo insurance policy, there are some options that you will want to ask about. Since every insurance company offering fire insurance for a condo is different, asking about these options is important to help you understand what is covered and what will not be covered when something happens.
Damage can be caused to the general use property that is used by all of the condo owners. Sometimes the homeowner's association fees are not enough to cover the repairs that are needed and, when this happens, all unit owners are assessed a certain amount of money to make the proper repairs. With assessment coverage, you will be insured against that assessment. The assessment will then be paid by the insurance policy minus whatever your agreed upon deductible is.
Another option you will want to ask about is how you will be paid for the replacement of your personal belongings. There are two ways that your personal belongings can be replaced in the event of a fire or other catastrophe. You can either have the belongings replaced at their cash value minus depreciation or at their replacement cost. Replacement cost is usually better because prices will rise for certain items over the years and replacement cost pays the current price in the market for an item that you will need to replace.
Flood and Earthquake Protection
Other options you might want to consider asking about are floater insurance and protection from flood or earthquake. Most general insurance policies do not cover against flood and earthquake damage to personal belongings. Therefore, if you live in an area prone to either, you will want to make sure to get this additional coverage. You should also ask about floater insurance since most insurance policies do not offer coverage for items such as computers, jewelry, and collectibles or protect you if fire or other damage occurs to those items. If you own any of these and they are expensive, you may want to see about paying additional premiums to cover them in case something happens.
Quotes and Providers
To explore your options for fire insurance or general insurance for a condo, you can visit the following websites for a free no obligation quote:
This is a brief list; be sure to compare quotes from several companies before deciding on a policy.
Rates for condo insurance policies will vary from company to company depending on a number of factors. For example, your costs will depend on the deductible that you choose, but you should make sure to choose a deductible that you can afford. Rates will also vary depending on the state that you live in and the weather and other natural phenomenon that are prone to cause property damage.
The last thing you will want to ask about is discounts. Typically, you can get discounts from most insurance companies if you have equipment in your condo that will protect you from loss. For example, if you have smoke detectors and a sprinkler system, this could give you a discount in coverage because of the extra protection against the hazard of a fire.