If you are getting ready to purchase a condo to live in, you may have some questions relating to the home insurance policy you should get to protect your new home. Home insurance is a necessity when living in a condo; however, the types you need will depend on the mastery policy offered by the homeowners association (HOA) that manages the community your condo is located in. Here are two questions you should ask before you choose the right home insurance policy for your new condo.
What is a master policy?
A master policy is an insurance policy the HOA purchases for the community. This type of policy is needed by every HOA, because the HOA actually owns the outsides of the homes and the common areas in the community. You will be paying for this policy, because you are a homeowner in the community, and this is done through the monthly fees you must pay the HOA.
There are two main types of master policies, and you will need to know which type the HOA has before you get your home insurance coverage. The first type is called bare walls coverage, and this covers the basic structure of your home. The other type is called an all-in policy, and this covers the basic structure of your home and any fixtures that are part of your home.
What type of coverage will you need?
If the HOA has a bare walls policy, you will need more coverage on the home insurance policy you purchase than you would if they carried an all-in policy. In either case, you will definitely need to have coverage for all your personal belongings, because these are never covered under the master policies of an HOA.
You should also ask the HOA if they offer liability coverage. This is a form of coverage used to protect you if something happens to someone that is visiting your home. For example, if your friend slips on the icy sidewalk and gets injured, this would be a liability issue if the person sued for damages. Your HOA may cover an ample amount of liability coverage. If not, you would need to make sure you have liability coverage on your own homeowners insurance policy.
Being overprotected with insurance is always better than not having enough coverage. If you would like a quote for homeowners insurance for your new condo, contact a local home insurance agency.
Share4 April 2017
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!