Thoughts from Hearth and Home

Yes, most (if not all) condo associations have their own homeowners insurance policies to protect their properties. These investors have thousands, if not millions, of dollars tied up in their building, and they're not going to risk the complete loss of their investment if and when disaster strikes when they can prevent it by insuring their property. That coverage, unfortunately, doesn't extend to your individual unit and it definitely doesn't apply to your personal possessions, which means you're going to need to purchase additional coverage for your condo if you want to make sure you're prepared when the unthinkable occurs.

What doesn't your condo association's homeowners insurance cover? The list of what it does cover is exponentially shorter. Your condo association's insurance protects the exterior of the building, the lobby and any other common areas that could be affected by storms, drunk drivers or other natural and unnatural catastrophes. That coverage stops at the cockroach sized crawl space between your interior and your exterior walls, however. Beyond that point it's up to you.

As a condo owner you're going to be responsible for purchasing a homeowners insurance policy that will protect the interior of your condo, including your inner walls, carpets, flooring, lighting fixtures and cabinets, as well as your personal possessions. (The specifics of what you as a unit owner will be responsible for are completely up to your condo association. They may have additional coverage that they voluntarily (i.e. without the state telling them they have to) provide for their condo owners, but since this varies by location and individual owner it's smart to check rather than assume.

You can also count on being held responsible for your own liability insurance. Guess what? If you tell your neighbor that you just mopped your kitchen floor and they walk out, slip on a wet spot and break their hip anyway, you're responsible-and those legal and medical fees can add up fast if they decide to sue. Your homeowners insurance liability policy will protect you from complete and total financial ruin when they decide they want to clean out your bank account by picking up part of the tab.

Finally, as a condo owner you're responsible for any damages caused by yourself, your children, your pets or your vehicle to common areas. That means if you haven't gotten your dog potty trained quite yet and they decide that the oriental rug in the lobby looks like a good place to squat, you're going to be left holding the tab. Have you ever seen the price tag on an oriental carpet? It's not pretty. It makes the cost of that sweet leather sofa you just bought for your living room that nearly cleaned out your savings account look like something you picked up at the dollar store.

Are you starting to get the picture about how important your homeowners insurance really is?
The moral of this story is not to assume that your condo association has you covered in terms of homeowners insurance, because they don't. That's entirely up to you.

About the Author:

Anthony M. Peck is the Senior Developer, Software Project Manager, and Director of Business Development for QuoteScout.com. Since its launch in 1996 the company has specialized in matching consumer requests for accurate online insurance quotes with multiple local and national agents. For more information on affordable home insurance for your condo, visit QuoteScout.com.

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