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CONDO / RENTAL INSURANCE
Even though you do not own the roof over your head, you
still need to protect yourself in the event of a storm
or other type of tragedy.
Your condo association will fix the building, but they
will not replace your damaged personal property.
You will need to buy some type of condo/rental insurance
if you want protecting from any type of accident, theft
or unforeseen occurrence that can result in financial
distress.
If that unanticipated day ever arrives, condo or renters
insurance will be the wisest purchase you ever made.
Usually, Broad Form insurance will cover any damage that
occurs to you dwelling and possession as a result of
fire, explosion, lightning, windstorm, hurricane, hail,
civil disturbance, theft, etc..
In addition, there is also Special Form insurance that
covers the same risks of damage to personal property
that you list in detail.
Making sure your personal property is covered is very
important for renters and condo owners. It is easy to
determine the cost for replacing carpet and furniture.
However, calculating the cost of personal items like
jewelry, antiques, artwork, etc. can be extremely
subjective. Therefore, it is important that you discuss
any items of particular value with agent and have them
appraised and listed in your policy if needed.
There is third type of coverage renters and condo owners
should consider. A Comprehensive Form covers your
property from all dangers that are not specifically
named. This type of insurance is typically more
expensive.
Condo Insurance
Co-op and condo unit owners have to deal with some
precise insurance needs and dilemmas. Owners will need
to understand exactly what will and will not be covered
by the condo association covers or the shareholders of
the co-operative.
Every type of association will likely have a master
policy insurance that covers you for the actual
structure and common elements -- areas such as a gold
course or pool -- owned by all unit owners. The
master policy and
association documents will clearly state what the common
areas are and where your unit begins. In some instances,
your unit may start inside the wallboard. On the
contrary, the wallboard may be measured as part of your
unit.
In a typical case, suppose your dishwasher overflows and
causes damage to the ceiling in the residence below. It
is very likely that you will not even have to file a
claim. Your neighbor's insurance policy may cover or the
master insurance policy may also. I will all depends on
the condo documents and the master policy.
Renters insurance
No matter if you reside in a duplex, townhouse,
apartment building or house, your landlord's insurance
will cover all losses or damage that is incurred to the
building itself. In order to protect your personal
property you will need to purchase a renters policy to
replace or repaid anything that is damaged, destroyed or
stolen.
The most basic policies provide for payouts up to
$4,000. However, you can structure a policy to satisfy
your personal needs. Coverage typically includes lost
money, missing or destroyer valuable papers, loss of
merchandise used for your business, furs or jewelry.
It is also common for a renters policy to covers you
when you travel, typically up to 10 percent of the value
of your policy, and also offer liability coverage (with
associated legal fees) up to about $25,000.
However, many renters don't necessitate insurance.
For example, college students, are typically covered by
their parents' or guardians' homeowners policies while
residing away from home, as long as they are living on
or close to campus.
Personal property is covered to the same 10% cap of
their parents' 'away-from-home' personal property limit.
Their liability for injury claims by others is covered
up to 100% of the limit on the parents' policy.
How much renters insurance costs will depend on the
square footage of the rental property. Any type of
valuable or rare items, jewelry, antiques, or fine art,
will need to be listed separately. You will need to get
any of these items appraised.
Here's more basic advice on insurance, whether for
condo owners or renters:
- Vigilantly deliberate the limits on coverage.
Understand what you are buying and what you can expect
if an unforeseen disaster occurs.
- Obtain
replacement insurance, not actual cash value
coverage. Replacement insurance will pay replace your
goods at today's costs. With actual cash value coverage,
you will only be reimbursed what you paid, less the
'depreciation' because they're considered used. (Think
what a used stereo is worth.)
- Don't forget liability coverage. If you accidentally
leave a candle burning a burn your home down, you can be
held responsible. Your
condo association or
landlord will likely have insurance coverage, but if
you're negligent, they will likely come after you.
- Consider 'loss of use' coverage. This type of coverage
will pay for your motel or other temporary housing if
you have been forced out of your home by, for example,
as a result of a fire.
***Important tip!!
Even if you have a valid claim, it may be wiser to
pass up insurance money. Insurance should be used for
catastrophic events and not as an umbrella for minute
losses.
Filing two or three small claims will likely result in
either your policy being cancelled or at the very least,
higher rates. Any type of claim will remain on your
insurance history for 3-5 years. |