Own a condo? Do YOU have condo insurance?

Recently a condo owner returned from a week away to find that his condo was flooded, and their ceilings fell in, and lots of personal belongings were ruined. Why you wonder? Well his neighbor, who was no longer living in his unit, had an upstairs supply line to his toilet break and flood both units. Over $75,000 in damage to both units.

So my question to you is this: Do you have your condo interior and belongings insured?

Condos- in accordance with their bylaws-have insurance on the structure but the rub is always what is covered. Most insurance coverage will rebuild the structure back to the drywall and subfloor, and not cover flooring, painting, or any personal items like appliances, furniture, clothing, etc. Some condo insurance will build the condo back to the way the builder built it and sold it, but that will not cover your upgrades, ie. Your finished basement, tile or hardwood floors, or upgraded countertops, cabinets, and appliances. And in almost every case the insurance deductible is $5000 or more, and that is your expense many times.

The answer is not what kind of insurance your condo has, but what insurance YOU have. Does your condo owners insurance cover the deductible? Upgrades? Improvements? Living expenses for the hotel? Cars parked in your garage? Jewelry? All your fancy TV’s? If you rent your unit do you have appropriate landlord coverage or will your policy cover zero since you don’t live there? Do you have coverage for water backup from storms? Mold? Do you even have a condo owner policy and not a home owner policy?

Take a moment this week and review your coverage of your condo owner insurance and if you don’t have it, get it right away. It’s not your condo association coverage, as they have that, it’s what is your personal coverage.

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