Condo Owners: What Is Condo Insurance and Do You Need It?

Not sure if you need to get condo insurance for your new place?

In 2018, the number of Americans who rented their homes reached 108.5 million from 99.4 million in 2010. This change in household trend is the availability of condos for rent. Renting a condo is also a more flexible choice for many Americans.

Like owning a house, you need to take care of a few things when you choose to rent. Below, we’ve got a guide to help you understand condo home insurance.

1. What is Condo Insurance?

When you’ve got condo insurance, you have a policy covering the inside of your condominium. This means that the insurance covers your unit’s items plus your belongings. That includes the condo’s interior walls, appliances, personal property, and valuables.

2. Condo Insurance: Coverage and Cost

For you to get a clearer idea of what condo insurance is, let’s talk about what it covers. The typical condo insurance coverage includes:

  • Personal liability coverage
  • Guest medical coverage
  • Building property protection
  • Personal property coverage

For example, you cause injury to someone who is visiting your condo. Personal liability coverage and guest coverage can help pay for medical bills. The former may also help you pay for related legal expenses.

Building property protection helps with repairs or damages caused by a covered peril. This includes its interiors, walls, and built-in fixtures. Personal property coverage helps pay for stolen or damaged appliances, furniture, and clothing.

Condo Property Coverage Types

You also need to figure out what type of personal property coverage you want. The two types are cash value coverage and replacement cost coverage. The more affordable coverage type of the two is the former.

Cash value coverage pays you back the items lost at their current value. Replacement cost coverage will give you money for the cost you spent on the item.

Condo Insurance Cost

Many American retirees prefer to rent because it gives them more flexibility. Plus, they can use their money to pay rent, travel, and try new hobbies rather than buy a house. Renters also feel more confident about buying condo insurance because it’s cheaper.

The price varies depending on your property’s value and the amount of coverage you carry. If you have more valuables in your condo, you may need extra coverage for them.

3. Is a Condo Insurance Mandatory for Condo Renters?

Unlike homeowner’s insurance, renter’s insurance is not mandatory. Yet, it’s a smart move to get it to protect your assets. Mortgage lenders may ask you to buy condo insurance to protect their financial interests.

When you get renter’s insurance, make sure you get the best condo insurance available. Not sure where to find one that will suit your needs? Visit Insurance 605 today and get a quality condo insurance quote from their page.

Insure Your Condo Today

Getting insurance won’t only protect your condo and income from unexpected events. It’ll also protect your property, guests, and peace of mind.

We hope this guide helped you understand condo insurance. Do you want to see more content that tackles similar topics? Check out our other guides now to see other insurance-related posts.

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