By joseph s l tan matt at Shutterstock
You already know that part of owning a home includes purchasing homeowner’s insurance. But what if you’re opting for a condominium instead of a standalone property? Here are a few things McKinney residents need to know about condo insurance.
The first thing many people ask is why they actually need condo insurance. The simple answer is to fully protect yourself and your personal items against the unexpected. Plus, your HOA likely requires you to take out a policy. Unlike traditional homeowners’ insurance, a condo policy covers the items inside your unit and not the exterior. This is because the condo association’s master policy handles those exterior walls, while your policy handles things like drywall, plumbing, electrical and fixtures inside. This is a very important distinction. Furthermore, having a condo policy protects you against other things including injuries to those visiting your home, replacement of your personal property after a loss, and helping you find some other place to temporarily stay if your condo unit is too damaged for you to continue living there.
So, what types of incidents does a condo insurance policy actually cover? In most cases, condo insurance pays for certain named perils and specific accidents. This includes things like smoke and fire, theft, explosions, wind and hail, vandalism, burst piping and lightning. It also covers healthcare costs for any guests who become injured while visiting you. However, other things are not typically covered by condo insurance. Examples of non-covered perils include earthquakes, floods, intentional injury to others and nuclear hazards. Likewise, damage from underground water — such as a major sewer backup — is not covered under your policy. Damage from birds, rodents and insects plus normal wear and tear are usually also excluded.
There are numerous factors that come into play when purchasing condo insurance in McKinney. The first is the area in which your condo is located. Certain areas have higher crime rates, which affect the overall cost of condo insurance. Next, the age and size of the building are considered. The type of building construction and how much your HOA covers are also considered factors. Ultimately, the amount you pay for condo insurance has a lot to do with the coverage options you select. A lower deductible or a more robust set of coverage often means a higher policy premium.
That said, the next question we often hear is how much condo insurance is to purchase. Unfortunately, there isn’t really a cut and dry answer. This really depends on your exact needs and what’s being covered by your HOA already. Talking with a licensed insurance agent about your particular situation is the best way to purchase condo insurance in the McKinney area. Need more information or want to find out how condo insurance can help protect you from the unexpected? Contact Mauceri Bynum today for further details.