Condo Buying Checklist: Insurance Details

Condo Buying Checklist

In this series, we’ve provided compiled a complete condo-buying checklist, including how to spot association red flags before settling on a specific property. In this next article, we’re going to shed some light on the ins and outs of your Bergen County Condo Insurance policy, we’re going dive deeper into why you need it, what it covers, and what it doesn’t as it varies significantly from a standard home insurance policy.

Read on to get more insight into your required insurance and get the most bang for your buck.

Why you need condo insurance

HOA’s carry master policies that cover losses to shared properties or the building itself. However, you’ll need additional coverage to repair damages to the inside of your unit or theft, for example. Here’s what you’ll need condo insurance for. What are the things you need to be covered for?

Interior damage.

As a condo owner, you don’t own the building. But you do own your unit, often including fixtures such as lighting, cabinets, and appliances. Whether you need to insure your unit’s interior comes down to what kind of master policy your HOA carries.

If your HOA has what’s known as an “all-in” HOA policy, it typically covers all the original items built into your place, like the aforementioned cabinetry, lighting and other fixtures, plus things such as plumbing and wiring. However, if the HOA has what’s called a “bare walls” HOA policy, it’s up to you to insure everything in your living space beside the walls, floor, and ceiling, explains Nerd Wallet.

Injury in your home.

If one of your guests becomes injured in your condo, your condo insurance policy will cover the medical and litigation costs you incur.

Theft.

If your personal possessions are stolen, such as your electronics, clothing, or furniture, your condo insurance will front the money to replace them.

Your unit becomes uninhabitable.

If your unit suffers immense damages and makes it temporarily uninhabitable, your condo insurance policy will pay for your living expenses in a hotel.

When your HOA’s insurance comes into play.

On the other hand, your HOA will be liable for the following damages:

  • Building exterior repair
  • Amenity repair
  • Shared space damages
  • Injuries sustained in common areas

What your condo insurance covers

The following named perils are covered by condo insurance policies:

  • Fire and smoke
  • Explosions
  • Wind and hail
  • Theft
  • Vandalism
  • Lightning
  • Burst pipe

However, this policy does not extend coverage to wear and tear, intention injuries, damages caused by pests, flooding or earthquakes. If your area is prone to natural disasters, you’ll need to purchase additional specialized insurance coverage for those perils.

About Tri-State Insurance Agency

At Tri-State Insurance Agency, we want to ensure your high-net-worth homes are protected during the holidays and year-round. Our homeowners’ insurance policies are designed specifically to protect affluent homes like yours. To learn more about our coverage options, contact our specialists today at (973) 579-6776.

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