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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.



        

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